When will EPFO credit interest: Money will likely be in EPF account before this date; know balance this way
Retirement fund body Employees Provident Fund Organisation (EPFO) is going to give good news to its more than 6 cr subscribers soon. The EPFO is preparing to pay a lump-sum 8.5% interest for the financial year 2019-20 before 31st December in the Employees Provident Fund (EPF) account of its shareholders. Earlier in September 2020, Union Labour Minister Santosh Kumar Gangwar said that in the meeting of trustees, it was decided to give the interest for the financial year 2019-20 as two instalments of 8.15% and 0.35%.
It is the last month of the year and all employees have one question on their minds - When will EPFO credit interest in account? It has been one of the worst years on account of coronavirus pandemic and people have lost jobs and their salaries have been cut. In this situation, it is important to get the money in EPF accounts in the form of interest that is due. The Ministry of Labour has now sent a proposal to the Finance Ministry suggesting that the amount of interest payable for the financial year 2019-20 at the rate of 8.5% ought to be credited to the EPF accounts and that too in one go.
So, in all likelihood, retirement fund body Employees' Provident Fund Organisation (EPFO) is going to give good news to its more than 6 cr subscribers soon. The EPFO is preparing to pay a lump-sum 8.5% interest for the financial year 2019-20 before 31st December in the Employees Provident Fund (EPF) account of its shareholders. Earlier in September 2020, Union Labour Minister Santosh Kumar Gangwar said that in the meeting of trustees, it was decided to give the interest for the financial year 2019-20 as two instalments of 8.15% and 0.35%.
The news agency PTI quoted sources as saying that the Labour Minister has now sent the proposal to the Finance Ministry to put the interest amount payable for the financial year 2019-20 at the rate of 8.5% in one time EPF account. The ministry sent the proposal earlier this month. Sources said that the Finance Ministry’s approval on this proposal is expected soon. In such a situation, there is a strong possibility that the interest amount will be deposited in the accounts of the shareholders by the end of this month.
Earlier, the Finance Ministry had sought some clarification on interest for the last financial year. This explanation has been given to the Ministry of Finance. The 8.5% interest rate on EPF for the financial year 2019-20 was approved in the meeting of the Central Board of Trustees (CBT), the apex decision making body of EPFO led by Labour Minister Gangwar. In the meeting of CBT in March, it was decided to fulfil the commitment to pay 8.5% interest. But with this the CBT had decided that 8.5% interest would be credited to the accounts of shareholders in two instalments of 8.15% and 0.35%.
Once EPFO credits interest in your EPF account, how will you know?
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