In what comes as pleasant news with the beginning of 2021, retirement fund body EPFO on Thursday began crediting an 8.5 percent rate of interest on employees' provident fund (EPF) for 2019-20 for its over six crore members.
According to news agency PTI, the labour ministry has already sent the direction to credit the 8.5 percent interest on EPF for 2019-2020 to the EPFO and the body has already started crediting interest into members' accounts for the last fiscal.
"We had said that it would be our endeavour to provide 8.5 per cent rate of interest on EPF for 2019-20. We have issued a notification to provide 8.5 per cent rate of interest on EPF for 2019-20. We have begun the process to credit the said rate of interest into subscribers account," Labour Minister Santosh Gangwar said. He further said that he has asked to ensure that all those members who are retiring on December 31, must get 8.5 per cent rate of interest (for 2019-20).
The process for capital gains for payment of 0.35 percent interest for 2019-20 has also been completed, he added.
"It (8.5 percent interest) would comprise 8.15 percent from debt income and balance 0.35 percent (capital gain) from the sale of ETFs (exchange-traded funds) subject to their redemption by 31st December 2020," he said.
Earlier in March, the EPFO's apex decision making body Central Board of Trustees headed by Gangwar had approved 8.5 per cent interest rate on EPF for 2019-20. In September, the EPFO decided to split 8.5 per cent interest into two installments of 8.15 per cent and 0.35 per cent in its trustees meet headed by Gangwar. But later, the ministry decided to credit the entire 8.5 per cent into subscribers' accounts in one go.