Friends, On September 9, 2020, epfo cbt had its 227th meeting, where some important decisions have been taken, which we are going to tell you through this article. While everyone had a special look at epfo CBT meeting and expected that a major decision on PF interest rate and EPS95 minimum pension could come up in the 227th meeting of EPFO CBT, after all the meeting is over and three important decisions have been taken out of which three are good news and one is bad news. Let’s know these in detail.
PF Interest Rate Fixed at 8.5% Interest Rate for 2019-20
The first good news for PF subscribers is that EPFO is sanctioned to pay an interest rate of 8.5 per cent despite dire circumstances. In view of the country’s economic situation due to the corona epidemic at present, it was said that the interest rate fixed at 8.5% in EPF for the financial year 2019-20 could be reduced. But in the EPFO CBT meeting held on September 9, it was finally decided that EPF subscribers would get interest at the rate of 8.5% for the financial year 2019-20.
However, it has been stated in the meeting that the interest for 2019-20 will be paid in two instalments. The first 8.15% interest will be credited by the month of October and the remaining 0.35% interest credit will be made by December 30 after epfo receives returns from the invested ETF.
EDLI insurance amount limit increased
The second good news for PF subscribers is that the limit on EDLI insurance amount has been increased, let you know that each PF subscriber gets free life insurance coverage under EDLI (employees deposit linked insurance) in which the nominee gets a minimum of Rs. 2.5 lakh and a maximum of Rs. 6 lakhs as insurance amount when the PF member dies during the service.
The deadline for availing a minimum benefit of Rs 2.5 lakh under EDLI INSURANCE was upto 14th February 2020, which has now been extended further i.e. a minimum benefit of Rs 2.5 lakh will continue. In addition, the maximum amount received under EDLI INSURANCE has been increased from Rs 6 lakh to Rs 7 lakh. This means that a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh will now be given under EDLI insurance.
Employers will now be able to direct appeal to EPFO
The third good news is for employers to address any inspection,Dispute related matters employers will now be able to appeal directly to EPFO online, saving the employer valuable time and money. Earlier, the employers had to make an offline application which consumed time and money. But now employers can appeal online to direct EPFO to solve any problems, which will also benefit PF subscribers.
Bad news about EPS 95 minimum pension hike
Eps-95 pensioners have been demanding minimum pension hike for several times for which a letter has also been written to the Prime Minister Shri Narendra Modiji several times. There were high expectations from the EPFO CBT meeting held on September 9, 2020, that eps-95 could be a major decision on minimum pension hike, but let me tell you that no decision has been taken on eps-95 minimum pension hike at epfo CBT meeting on September 9.
So guys, these were some important decisions that I took on 9th September 2020 at EPFO CBT meeting, hoping that you would have liked this information, so please share it with your friends so that they can also know about it.
Decisions taken at EPFO CBT MEETING at a glance
An interest rate of 8.5% will be given on PF for FY 2019-20.
The interest on PF for the financial year 2019-20 will be credited in two instalments.
The first installment of interest will be credited 8.15% by the month of October.
0.35% in the second installment of interest on PF will probably be credited by December 30, 2020.
The minimum rs 2.5 lakh benefit of employees deposit linked insurance will continue to be available.
The maximum limit of Rs 6 lakh has been raised to Rs 7 lakh under EDLI (Employees deposit linked insurance).
No decision has been taken on eps 95 minimum pension hike.
New online facilities will be provided for employers.
