The Employee Provident Fund Organization (EPFO) has decided to keep the interest rate unchanged at 8.5 percent for the 2019-20 financial year. However, interest payable to provident fund subscribers will be paid in a staggered manner due to exceptional circumstances arising from the Covid-19 pandemic, the Ministry of Labor and Employment said in a press release. For now, the EPFO will pay an interest rate of 8.15 percent and the remaining 0.35 percent will be credited in December, the ministry said.
“In view of the exceptional circumstances derived from Covid-19, the Central Board reviewed the agenda regarding the interest rate and recommended the same rate @ 8.50% to the Central Government,” the ministry said in a press release.
The 8.15 percent interest amount will come from EPFO’s debt proceeds and the remaining 0.35 percent from the sale of exchange-traded funds (ETFs), subject to redemption before December 31, 2020, it added. the ministry.
Earlier this year, in March, the pension fund body had lowered the interest rate to 8.5 percent. The EPFO had paid an interest rate of 8.65 percent in fiscal year 2018-19.
“Due to poor market conditions, EPFO’s earnings have been affected. That is why CBT has decided that EPFO will pay 8.5 percent interest in two installments this year: 8.15 percent now of income from debt and the rest 0.35 percent by December 2020. We have decided to maintain our commitment to give 8.5 percent, “Virjesh Upadhyay, member of the central board of directors of EPFO and general secretary of Bhartiya Mazdoor Sangh, told NDTV. , affiliated with RSS.
The Employees Provident Fund Organization is the provider of the Employees Provident Fund, a pension plan for salaried persons in the country.
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