The central board of trustees of retirement fund physique – Workers’ Provident Fund Organisation (EPFO) – determined to maintain the rate of interest unchanged at 8.5 per cent for monetary yr 2019-20. Nonetheless, the curiosity payable to provident fund subscribers will probably be paid in a staggered method as a result of distinctive circumstances arising out of Covid-19 pandemic, Ministry of Labour & Employment stated in a press launch. For now the EPFO pays rate of interest at 8.15 per cent and remaining 0.35 per cent will probably be credited by December, the ministry famous.
“In view of remarkable circumstances arising out of Covid-19, the agenda concerning rate of interest was reviewed by the Central Board and it advisable the identical price @ 8.50% to the Central Authorities. It will comprise of 8.15% from debt revenue and steadiness 0.35% (capital acquire) from the sale of ETFs topic to their redemption by 31st December, 2020,” the ministry stated in a press launch.
Earlier this yr in March, the retirement fund physique lowered the rate of interest to eight.5 per cent. The EPFO had paid rate of interest of 8.65 per cent in monetary yr 2018-19.
