EPFO Likely to Cut Interest Rates in FY21, Final Decision on March 4 | Key Points

New Delhi: Following huge withdrawals and fewer contributions due to the coronavirus induced lockdown, millions of subscribers of the Employees’ Provident Fund Organisation (EPFO) are expected to face a further reduction in their returns in the FY 2020-21. The development comes ahead of the 228th meeting of the EPFO central board of trustees (CBT), wherein the interest rate for 2020-21 is likely to be announced. The Employees’ Provident Fund Organisation (EPFO) reportedly wrote a letter to members of its CBT and apprise them about the meeting, scheduled to be held on March 4. Also Read – EPFO Begins to Credit 8.5% Interest For 2019-20, to Reflect in EPF Accounts From January 1

“Finance Investment and Audit Committee (FIAC) is looking into the impact on EPFO’s earning in 2020-21, based on which a final decision will be taken on the interest rate”, a government official told the Economic Times. 

5-Point Cheat-Sheet to This Big Story: 

-The EPFO CBT review the EPF interest every year after consultation with the Ministry of Finance. The review of the EPF interest rate for a financial year is set at the end of that financial year (most probably in February but may go up to April or May).

-The CBT meeting in Srinagar on March 4 comes nearly a year and a half after EPFO started covering establishments in the earstwhile state of Jammu and Kashmir in November 2019, post the abrogation of Article 370.

-The interest rate of the employees’ provident fund is expected to witness a dip from 8.5 per cent for 2020-21 following higher withdrawal.

-Last year in September, the EPFO, in its trustees meet headed by Labour Minister Santosh Gangwar had decided to split 8.5 per cent interest into two installments of 8.15 per cent and 0.35 per cent.

-For 2018-19, the EPFO had provided 8.65 per cent rate of interest  to its around six crore subscribers.

EPF Historical Interest Rates

How to check PF balance

Account-holders can check your PF balance through any of these facilities:

Umang App

EPFO Member e-Sewa portal

SMS

Missed call.

EPFO Member e-Sewa portal

To check your EPF account balance on the EPFO portal, you must have an active Universal Account Number (UAN).

Login to the official EPFO Website

From the ‘Our Services’ drop-down menu, click on ‘For Employees’

Go to the services menu and click on ‘Member Passbook

Submit your UAN number and password

You will find Member IDs of all the accounts linked with your UAN

Select the Member ID of the EPF account for which you want to check the balance.

The EPF passbook will appear on the screen.

SMS Service:

UAN activated Members can know their latest PF contribution and balance available with EPFO by sending an SMS at 7738299899 from registered mobile number. “EPFOHO UAN? to 7738299899.

Missed call service: