EPF account holders can start thinking about celebrating! Reason for that is retirement fund body, the Employees’ Provident Fund Organisation (EPFO) interest rate for 2019-20 that will be sanctioned for employees is likely to be a very high one. EPF account holders can expect to get as much as 8.5% interest rate. That will surely put a pretty penny in EPF account holders pockets. That means the new year can really be something to celebrate!
However, that is not all the good news, there is more. Employees’ Provident Fund (EPF) accounts of some 6 crore subscribers will get the money credited in one go. Yes, the entire amount in one installment. Want more good news? Yes? Well, then know that this money is likely to be credited into EPF accounts by the end of December itself.
The EPFO, citing the tough, corona-hit times, had decided in September to split the interest rate for EPF account holders into two installments of 8.15 per cent and 0.35 per cent. This was announced after a meeting between EPFO trustees and Labour Minister Santosh Gangwar. This is not likely to happen now.
As things stand right now, according to a PTI source, the Labour Ministry has sent a proposal to the Finance Ministry to give concurrence to credit 8.5 per cent rate of interest on EPF for 2019-20. This was earlier in December.
EPFO to credit 8.5 % interest on provident fund for 2019-2020 by December
“The Ministry of Finance ratification is likely in few days. Thus the interest is likely to be credited by this month only,” the source revealed.
In March this year, when the lockdown was in effect, the EPFO had approved 8.5 per cent interest rate on EPF for 2019-20. Later, in September, the EPFO had decided to honour its commitment to provide 8.5 per cent rate of interest for the last fiscal. But it was also decided to split the rate of interest into two installments of 8.15 per cent and 0.35 per cent in view of the pandemic.
