8.5% PF interest to be paid in One Go, Not in Two installments
According to an NDTV report, Union Labour Ministry has moved a proposal to the Finance Ministry for the transfer of the entire consolidated amount of annual interest payments to Employees’ Provident Fund Organisation (EPFO) subscribers in one go.
As per the report, the Union labour and employment ministry has written to the finance ministry, seeking 8.5% interest to be credited into around 190 million EPF accounts for 2019-20.
“The recommendation is pending for approval of the finance ministry which is expected to come within a week. Labour ministry has proposed to notify the interest rate at one go now,” a top government official told to media.
Earlier in the month of September this year, Labour Ministry announced to pay 8.5% interest on employees provident fund (EPF) for 2019-20 in two installments, “It (8.50% interest) would comprise 8.15 per cent from debt income and balance 0.35% (capital gain) from the sale of ETFs (exchange-traded funds) subject to their redemption by 31st December 2020.”
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First Installment of PF Interest (8.5%) for 2019-20 was supposed to be paid by Diwali, in November 2020.
According to a senior official, the EPFO has received good returns from the sale of exchange-traded funds (ETFs) and is now in a position to transfer the entire tranche of interest payments to subscribers in a single instance.
In March, the retirement fund body had lowered the interest rate applicable to the Employees’ Provident Fund scheme to 8.5 per cent for 2019-20 from 8.65 per cent the previous year.