Big EPFO news! 8.5% interest on EPF a/c at one go; likely to be credited by month end

New Delhi: Retirement fund body EPFO is likely to credit 8.5 percent 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, news agency PTI has reported.

Earlier in September this year, the Employees Provident Fund Organisation had decided to split 8.5 percent interest into two installments of 8.15 percent and 0.35 percent in its trustees meet headed by Labour Minister Santosh Gangwar.

However, PTI quoting highly placed source said that the Labour Ministry has sent a proposal to the Finance Ministry to give concurrence to credit 8.5 percent rate of interest on EPF for 2019-20 earlier this month.

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

In March this year, the EPFO's apex decision making body Central Board of Trustees headed by Labour Minister Santosh Gangwar had approved 8.5 percent interest rate on EPF for 2019-20.

In a virtual CBT meeting in September, the EPFO had decided to honour its commitment to provide 8.5 percent rate of interest for the last fiscal. But the CBT had also decided to split the rate of interest into two installments of 8.15 percent and 0.35 percent in view of the pandemic.

It may be recalled that in order to ease the burden of EPF subscribers during the COVID-19 crisis, the Labour and Employment Ministry had on March 28 made amendments to the Employees’ Provident Funds Scheme (EPFO) allowing partial withdrawal of provident fund.

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EPFO members are allowed withdrawal not exceeding the basic wages and dearness allowances for three months or up to 75 per cent of the amount present in the EPF account of the member. The EPFO members were allowed to apply for the withdrawal online and all EPFO members will be able to avail the facility.