Employees’ Provident Fund (EPF), a retirement benefits scheme, requires the employee to contribute 12% of his basic salary and dearness allowance every month. Along with the employee, even the employer is required to contribute an equivalent amount (8.33% towards EPS and 3.67% towards EPF) in the employee’s account. At the time of retirement and during the service period, under some conditions and for specific purposes, the employee can withdraw the accumulated corpus.
The Employees’ Provident Fund Organisation (EPFO) has reduced the rate of interest on Employees' Provident Fund (EPF) by 0.15%. The financial year is attracting 8.50% interest on EPF in 2019-20. The interest rate was 8.65% for 2018-19 The reduction of interest on EPF is affecting about six crore employees.