EPFO subscribers to get 8.5% interest for 2019-20 at one go

New Delhi: Subscribers of retirement fund Employees’ Provident Fund (EPF) are likely to get the entire 8.5% declared interest rate for FY2019-20 at one go as Employees’ Provident Fund Organisation (EPFO) has been able to sell its equity holdings and earn higher-than-expected returns in December due to the market rally.

As per reports, 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.

Earlier in September, the central board of trustees (CBT) had announced that EPFO would be crediting the interest in two instalments for the first time as the retirement fund was not able to liquidate its equity investments due to the COVID-led market fall.

Hence EPFO had decided to credit 8.15% interest (earned from its debt investments) immediately and the remaining 0.35% interest (capital gain from equity investments) later subject to its redemption.