Retirement fund body EPFO on Thursday began crediting an 8.5 percent interest rate to the employee provident fund (EPF) for 2019-20 for its more than six million members, said a high Commissioner.
A large number of members of the Employee Provident Fund Organization (EPFO) could see their EPF accounts updated with a credit of 8.5 percent interest rate for 2019-20, a senior official told PTI. The official also reported that the Ministry of Labor has already sent the address to credit the 8.5 percent interest on EPF for 2019-20 to the EPFO and the agency has already begun to credit interest in the members’ account for the last prosecutor. Labor Minister Santosh Gangwar said: “We had said that our endeavor would be to provide an interest rate of 8.5 percent on EPF for 2019-20. We have issued a notice to provide an 8.5 percent interest rate on the EPF for 2019-20. We have also started the process to credit said interest rate in the subscribers’ account ”. The minister also said that he has asked to ensure that all those affiliates who retire on December 31, obtain an interest rate of 8.5 percent (for 2019-20). The process of capital gains for payment of 0.35% interest for 2019-20 has also been completed, he added.
“This (8.5 percent interest) would comprise 8.15 percent of debt proceeds and the balance of 0.35 percent (capital gain) from the sale of ETFs (exchange-traded funds) subject to to its redemption before December 31, 2020, “he said.
Hours earlier, Gangwar had approved the 8.5 percent rate for the last fiscal year after receiving approval from the Finance Ministry. Subsequently, the instruction was sent to the EPFO to credit the interests of the EPF in the accounts of the subscribers. In March this year, EPFO’s highest decision-making body, the Gangwar-led Central Board of Directors, approved an 8.5 percent interest rate on the EPF for 2019-20.
In early September this year, the EPFO had decided to divide the 8.5 percent interest into two installments of 8.15 percent and 0.35 percent at its Gangwar-led trustee meetings. But then the ministry decided to credit the entire 8.5 percent to subscribers’ accounts in one go.
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