PF interest in one go by the end of December - to credit 8.5 per cent rate of interest on EPF for 2019-20

Earlier, in September this year, the EPFO had decided to split 8.5% interest into two instalments of 8.15% and 0.35%

Sources said the labour ministry has sent a proposal to the finance ministry to give concurrence to credit 8.5 per cent rate of interest on EPF for 2019-20 earlier this month

PTI   |   New Delhi   |  14.12.20  :  Retirement fund body EPFO is likely to credit an 8.5 per cent rate of interest for 2019-20 in the employees’ provident fund (EPF) accounts of around six crore subscribers in one go by the end of December.

Earlier, in September this year, the Employees’ Provident Fund Organisation had decided to split 8.5 per cent interest into two instalments of 8.15 per cent and 0.35 per cent in its trustees meet headed by labour minister Santosh Gangwar.

Sources said the labour ministry has sent a proposal to the finance ministry to give concurrence to credit 8.5 per cent rate of interest on EPF for 2019-20 earlier this month.

“The finance ministry ratification is likely in a few days. Thus, the interest is likely to be credited by this month only.”

The source further said that earlier the finance ministry had sought some clarifications on the rate of interest for the last fiscal, which were duly addressed.

In a virtual CBT meeting in September, the EPFO had decided to honour its commitment to provide 8.5 per cent rate of interest for the last fiscal. But the CBT had also decided to split the rate of interest into two instalments “in view of the exceptional circumstances arising out of Covid-19”.

“It (8.5 per cent interest) would comprise of 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020,” it had said.