Employees’ Provident Fund Organization (EPFO) will soon declared interest rate of 8.5 per cent on their EPF savings for the financial year 2019-20.
The Union labour and employment ministry has written to the finance ministry, seeking 8.5 per cent interest to be credited into around 190 million EPF accounts for 2019-20.
The recommendation is pending approval of the finance ministry which is expected to come within a week. The labour ministry has proposed to notify the interest rate at one go now.
Earlier, the EPFO had decided to credit 8.15 per cent interest from its debt income and the remaining 0.35 per cent capital gains from the equity sale would be given later, subject to its redemption. However, the EPFO decided to wait till December to examine its equity returns before crediting interest. In September, The EPFO had projected a surplus of Rs.500 crore when it had decided to credit interest to subscribers in two tranches.
“The return on EPF investments is so healthy that we can easily give up to 8.6 per cent interest rate to our subscribers, but since the trustees have decided to credit 8.5 per cent for this year, we will stick to it and carry forward the higher surplus to the next fiscal year,” the EPFO official said.