A senior official said that the retirement fund body EPFO on Thursday started crediting 8.5 percent interest rate on the Employees Provident Fund (EPF) for 2019-20 for the six crore members.
A senior official told PTI that a large number of Employees Provident Fund Organization (EPFO) members will be able to view their updated EPF accounts for 2019-20 with an 8.5 percent interest rate. The official further informed that the Labor Ministry has already sent the credit of 8.5 percent interest on EPF to the EPFO for 2019-20 and the body has already started depositing interest in the members’ account for the last financial year. Labor Minister Santosh Gangwar said, ‘We said that we will try to get 8.5% interest rate on EPF for 2019-20. We have issued a notification to provide 8.5 percent interest rate on EPF for 2019-20. We have also initiated the process to credit the said rate of interest to the customers’ account. The minister also said that he has asked to ensure that the members who are retiring on 31 December should get 8.5 percent interest rate (for 2019-20). He said that the process of capital gains for payment of 0.35 percent interest for 2019-20 has also been completed.
“This (8.5 percent interest) will be 8.15 percent from the loan proceeds and 0.35 percent (capital gains) from the sale of ETFs (exchange traded funds) subject to their redemption by December 31, 2020,” he said.
Earlier in the day, Gangwar approved the 8.5 percent rate for the previous fiscal year after obtaining the consent of the Finance Ministry. After this, instructions were sent to the EPFO for depositing interest in the accounts of the EPFO customers. In March this year, the Central Board of Trustees, the highest decision-making body of the EPFO, approved an 8.5 percent interest rate on the EPF for 2019-20, headed by Gangwar.
In September this year, the EPFO decided to split the 8.5 percent interest into two installments of 8.15 percent and 0.35 percent in a meeting of its trustees headed by Gangwar. But later, the ministry decided to transfer the entire 8.5 percent contribution to subscribers’ accounts at one go.
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