EPFO May Credit 1st Installment of 8.15% Interest by Diwali, 2nd Tranche of 0.35% Likely by December

The Employees’ Provident Fund Organisation (EPFO) is likely to pay the first instalment of the 8.5% interest for the financial year 2019-20 by Diwali this year, reported Live Hindustan. The EPFO will reportedly pay 8.5 percent interest for the year ended March 31. The interest rate will be divided into two instalments – 8.15 percent and 0.35 percent.

October 10, 2020

National

2 min

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New Delhi, October 10: The Employees’ Provident Fund Organisation (EPFO) is likely to pay the first instalment of the 8.5% interest for the financial year 2019-20 by Diwali this year, reported Live Hindustan. The EPFO will reportedly pay 8.5 percent interest for the year ended March 31. The interest rate will be divided into two instalments – 8.15 percent and 0.35 percent.

According to the report, 8.15 percent would be credited by Diwali this year, while remaining 0.35 interest is likely to be credited by December. The EPFO’s earning suffered drastically due to the outbreak of COVID-19 Pandemic in March. 

Last month, the Labour and Employment Ministry in a statement had said, “In view of exceptional circumstances arising out of Covid-19, the agenda regarding interest rate was reviewed by the Central Board and it recommended the same rate at 8.50 per cent to the Central government.” The ministry had further added, “It would comprise of 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs subject to their redemption by December 31, 2020.” 

After the outbreak of COVID-19, the EPFO introduced an auto mode of settlement for COVID-19 advances and illness-related claims, which reduced the settlement cycle to just three days. Over 38 lakh employees withdrew their provident fund (PF) since March 25, 2020. According to the Central Government, EPF withdrawal claims worth Rs 44,054.72 were settled.

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