Good news for PF subscribers! EPFO likely to credit 8.5% 1st installment on Diwali

New Delhi:  In what could bring cheers to account of its around 6 crore subscribers, retirement fund body Employees' Provident Fund Organisation's (EPFO) is likely to credit the installment of 8.5% interest on Diwali, a report by Live Hindustan said.

EPFO had in September announced that it would credit 8.5 percent interest on employees provident fund (EPF) for 2019-20 in two installments.

The retirement body will provide 8.15 percent interest on the EPF account of subscribers now while the remaining The remaining 0.35 percent rate of interest on EPF for 2019-20 would be credited into the subscribers account in December this year.

The EPFO had earlier planned to liquidate some of its investment in exchange traded funds to meet the deficit for providing 8.5 percent interest for the last fiscal, but it could not do so because of the volatile market conditions amid COVID-19 led nationwide lockdown.

The EPFO's apex decision making body Central Board of Trustees (CBT) will meet again in December. The CBT will then take a decision regarding crediting the remaining 0.35 percent interest into subscribers account.

The board headed by Labour Minister Santosh Gangwar had decided to provide 8.5 percent interest rate for 2019-20 in its meeting held in March this year.

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.

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.