EPFO starts to credit 8.5% for 2019-20, amount to be reflected in EPF accounts from January 1 – business news

The pension fund body EPFO ​​on Thursday began lending an interest rate of 8.5% to the Employee Prevention Fund (EPF) for the period 2019-20 for its more than six members, a senior official said.

A large number of members of the Employee Welfare Fund Organization (EPFO) could see their EPF accounts updated with an 8.5% credit, the interest rate for 2019-20, a senior official told PTI. The official further informed that the Ministry of Labor has already sent the 8.5% interest lending direction to EPF for 2019-20 to EPFO ​​and the body has already started to credit interest on behalf of members for the last tax. Labor Minister Santosh Gangwar said: “We said it would be our effort to offer an 8.5% interest rate at EPF for 2019-20. We have issued a notice to provide an interest rate of 8.5% to EPF for 2019-20. We also started the process of crediting the interest rate mentioned in the subscribers’ account. “The minister also said that he asked to ensure that all those members who retire on December 31 must receive an interest rate of 8.5% (for 2019-20). The process for capital gains for the payment of 0.35% interest for 2019-20 has also been completed, he added.

“It (8.5% interest) would comprise 8.15% of debt income and the balance of 0.35% (capital gain) from the sale of ETFs (exchange traded funds) subject to redemption until 31 December 2020 “, he said.

Earlier in the day, Gangwar had approved the 8.5% rate for the last tax, after receiving the agreement of the finance ministry. Subsequently, the direction was sent to EPFO ​​to credit the interest to EPF in the subscribers’ accounts. In March this year, the EPFO ​​Central Board, led by Gangwar, approved the 8.5% interest rate for EPF for the period 2019-20.

In early September this year, EPFO ​​had decided to split 8.5 percent of the interest into two tranches of 8.15 percent and 0.35 percent in its Gangwar trustees. But later, the ministry decided to credit the entire date 8.5 percent to subscriber accounts at once.