There is news of relief for about 6 crore employees of the country covered under the ambit of Provident Fund (PF). The Employees Provident Fund Organization (EPFO) is expected to credit 8.5 percent interest for the financial year 2020-21 till the end of July, as per a Zee Business report.
The interest will be credited directly into the beneficiaries account by July end. Labour Ministry had given a green signal to the proposal in this regard, the report stated.
Last time, many EPF subscribers had to wait for 8 to 10 months to get the interest of 2019-20. Earlier, the Employees Provident Fund Organisation had decided to keep the interest rate unchanged at 8.5 percent, which is the lowest interest rate offered by India’s social security body in the past 7 seven years.
Interest decided in meeting
Earlier, the Central Board of Trustees (CBT) of EPFO had retained the interest rate on Provident Fund (PF) for the financial year 2020-21. In a meeting held in Srinagar on March 4, 8.5 percent interest on PF was fixed.
The decision to keep the interest rate unchanged at 8.5 per cent was taking in a board meeting chaired by Labour and Employment Minister Santosh Kumar Gangwar.
“Since FY14, EPFO has consistently generated returns of over 8.5 per cent. A high EPF interest rate along with compounding makes a significant difference to gains of subscribers. This is despite the fact that EPFO has consistently followed a conservative approach towards investment, putting highest emphasis on the safety and preservation of principal first approach. Risk appetite of EPFO is very low since it involves investing poor man’s retirement savings also,” the Labour Ministry had said in a statement after announcing to keep the interest rate on PF deposits same as the last year.
EPFO allows withdrawal of COVID-19 advance
To support its subscribers during the second wave of COVID-19 pandemic, retirement fund body EPFO has now allowed its over five crore subscribers to avail second non-refundable COVID-19 advance.
Members who have already availed the first COVID-19 advance can now opt for a second advance also. The provision and process for withdrawal of second COVID-19 advance is same as in the case of first advance.