There is good news for PF account holders. The Employee Provident Fund Organization (EPFO) said that it will put the first installment of interest for the financial year 2019-20 into the account of PF Subscribers before Diwali. The EPFO had said in September that it would pay an interest rate of 8.5 per cent for the financial year ended March 31.
8.15 percent interest will be distributed by Diwali
According to the report, the 8.5 percent interest rate is divided into two parts. This is 8.15% and 0.35%. The government will distribute 8.15 per cent interest under the management fund till Diwali. The remaining 0.35 per cent interest can be released by December.
Interest rate 8.5 percent
The EPFO earnings were severely affected by the Corona epidemic. In such a situation, the EPF maintained the interest rate at 8.5% for the financial year 2019-20. Recently, the Ministry of Labour gave this information.
You will get interest in two parts
The 8.5% interest on your PF fund divides into two. Of this, 8.15 percent interest is earned by investing in debt funds. The remaining 0.35 per cent EPFO invests in ETF (exchange traded funds). The ETF is redeemed on December 31. So that part will be received in or after the month of December.
Claim settlement time reduced
In times of Corona crisis, the EPFO has significantly reduced the claim settlement period. Claim settlement occurs in the first 20 days. Now this work is being completed in three days. Since March 25, 38 lakh 71 thousand claims worth 44050 crore have been settled. The Central Government has increased the sum assured from 6 lakh to 7 lakh under the Employee Deposit Linked Insurance Scheme.
(With inputs from navbharattimes.indiatimes.com)
Why is it a gift? It’s after all our money and honoring commitment is not a gift, its liability of the govt.