For the past few days, there have been various reports around employees provident fund (EPF) interest payment. But now a report by CNBCTV18 stated that retirement fund body EPFO will be paying the 8.5 per cent interest in one go into subscribers account and not in installment as stated earlier.
The Provident Fund Interest for FY20, as approved by the Central Board of Trustees on September 9, is 8.5 percent. However, the Labour ministry will have to get an approval from the Finance Ministry, before notifying 8.5 percent PF rate for FY20.
The EPFO had earlier planned to liquidate some of its investment in exchange traded funds to meet the deficit for providing 8.5 per cent interest for the last fiscal. However, it could not do so because of the choppy market conditions amid lockdown induced by COVID-19. The body is struggling to meet a shortfall of an estimated Rs 2,500 crore.
The board headed by Labour Minister Santosh Gangwar had decided to provide 8.5 per cent interest rate for 2019-20 in its meeting held in March this year.
