The Employees Provident Fund Organization (EPFO) likely to credit 8.5% interest on Employee Provident Fund (EPF) fixed for FY 2019-20 till the end of December in the employee’s account. If this happens, in the last month of 2020, this interest will reach the accounts of about 6 crore subscribers at one go. This information has been received from sources. In March this year, the Central Board of Trustees of EPFO, under the leadership of Labour Minister Santosh Gangwar, decided to pay 8.5% interest on the EPF for the financial year 2019-20.
In September of this year, the EPFO decided in a meeting of trustees that in view of the extraordinary situation caused by the Covid 19 epidemic, the 8.5% interest paid on EPF for the financial year 2019-20 will be divided into two accounts of the employee. To be inserted under this decision, there was a preparation to credit 8.15 percent interest in the first installment and 0.35 percent interest in the second installment. The source says that now the market conditions are more than favorable as the benchmark indices are at record highs. Therefore, there should be no problem in crediting 8.5% interest rate in the account of subscribers.
The Ministry of Finance is late to be approved
According to the source, the Labour Ministry has sent a proposal to the Ministry of Finance, seeking consent to credit 8.5% interest rate of FY 2019-20 in EPF accounts by the end of December. The decision of the Finance Ministry in this regard can come in a few days and if agreed, this interest will be added to the accounts of EPF subscribers by the end of this month. The source also said that earlier the Finance Ministry had asked for some clarification on the interest rate on EPF for the last financial year, which has been resolved.