The Employee Provident Fund Organization (EPFO) of the retirement fund body said Thursday that it has begun crediting a 8.5 percent rate of interest in the Employee Provident Fund (EPF) for 2019-20 for its more than six million members.
A large number of members of the Employee Provident Fund Organization (EPFO) could see their EPF accounts updated with a credit of an 8.5 percent interest rate for 2019-20, the PTI news agency said, citing a senior official.
According to the agency’s report, 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 retirement body has already begun to credit interests in the affiliate account by the last prosecutor.
“We had said that our effort 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 this interest rate in the subscribers’ account, ”said Labor Minister Santosh Gangwar.
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, the minister approved the 8.5 percent rate for the last prosecutor after receiving approval from the Ministry of Finance. Subsequently, the instruction was sent to the EPFO to credit the interests of the EPF in the accounts of the subscribers.
In early March, EPFO’s highest decision-making body, the Central Board of Directors headed by Gangwar, had approved an 8.5 percent interest rate on the EPF for 2019-20. In September, EPFO had decided to split the 8.5 percent interest into two installments of 8.15 percent and 0.35 percent at its Gangwar-led trustees meeting.
But then the ministry decided to credit the entire 8.5 percent to subscribers’ accounts in one go.
–With PTI inputs
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