As per the new rules of Central Board of Trustees Employees’ Provident Fund Organisation (EPFO) decides to pay 8.5% interest during 2019-20.
The Central Board of Trustees (CBT) which has decided to pay 8.5 % interest to EPF subscribers for 2019 to 2020.
CBT- Central Board of Trustees is the decision making body of Employees’ Provident Fund Organisation (EPFO) to decide regarding finacial issue.
In the year 2017-2018 8.55 per cent and in 2018-2019 8.65 per cent of interest rate was provided by Employees’ Provident Fund Organisation (EPFO) to EPF subscribers.
As compare to the previous year the rate of interest was reduce from 8.65 percent to 8.50 percent.
Labour and Employment Minister Santosh Kumar Gangwar held Board Meeting on 9 September 2020 (Wednesday), the retirement body decided that it will credit 8.15 percent out of the promised 8.5 percent interest immediately into is subscribers’ account.
In two installment the total 8.5 % interest will be pay by EPFO. First paying the installment of EPF interest i.e. 8.15 percent out of 8.5 percent and the rest 0.35 % interest will be credited in to accounts of EPFO subscribers in December.
The Labour and Employment Minister Santosh Kumar Gangwar chaired the 227th Meeting of the Central Board of Trustees of Employees’ Provident Fund.
During the Covid-19 pandemic the Central Board has recommended the same interest rate at 8.50 per cent to the Central Government.
It would comprise 8.15 per cent from debt income and balance 0.35 per cent capital gain from the sale of Exchange Traded Funds, ETFs subject to their redemption by 31st December this year.
According to the Central Board accorded approval for an Amendment to Employees’ Deposit Linked Insurance Scheme, 1976 to enhance the maximum assurance benefit.
Labour unions are unhappy due to the reduction of interest rate from 8.65 percent to 8.50 percent. Currently as per the EPF rules employee pays 12 percent of EPF amount from the salary.