EPFO to pay 8.5% interest for FY20 in 2 instalments

New Delhi: The Employees’ Provident Fund Organsation (EPFO) decided to credit interest rate to formal sector workers for 2019-20 in a staggered manner, citing the coronavirus pandemic’s impact on its income.

The EPFO will credit 8.15 per cent to its subscribers for 2019-20 for now; significantly lower than 8.5 per cent it had decided upon in March.

“The remaining 0.35 per cent will be credited in December after redemption of the EPFO’s equity investments,” said a member of the central board of trustees (CBT) of the EPFO. The EPFO is staring at a shortfall of Rs 2,500 crore in 2019-20 if it gives out the interest rate of 8.5 per cent to its subscribers at one go, said the member requesting anonymity.

The decision was taken in the EPFO’s central board of trustees meeting chaired by Labour and Employment minister Santosh Kumar Gangwar.

 

 

Asianet.in/NewsDesk: Asianet Online