Government will now credit 8.5 percent interest in EPF account

New Delhi: Net new enrolments with retirement fund body EPFO grew by 27.79 per cent to 13.36 lakh in January compared to the same month in 2020, according to the payroll data released on Saturday, providing a perspective on formal sector employment amid the coronavirus pandemic. "The provisional payroll data of EPFO published on 20th March, 2021, highlights a growing trend of subscriber base with the addition of 13.36 lakh net subscribers during the month of January 2021," a labour ministry statement said. It stated that the data reflects growth of 24 per cent for the month of January 2021 over December 2020. "Year-on-year comparison of payroll data indicates an increase of 27.79 per cent in net subscribers’ as compared to the corresponding period last year (January 2020), indicating return to the pre-Covid levels of subscriber growth for EPFO," the ministry stated. Despite COVID-19 pandemic, the EPFO added around 62.49 lakh subscribers during the first ten months of 2020-21, the data showed. During 2019-20, the number of net new subscribers rose to 78.58 lakh as compared to 61.12 lakh in the preceding fiscal, the data showed.

New Delhi: A large number of members of the Employees Provident Fund Organisation (EPFO) would be able to see their updated EPF accounts with credit of 8.5 per cent rate of interest for 2019-20, a senior official told media.

The official further informed that the labour ministry has already sent the direction to credit the 8.5 per cent interest on EPF for 2019-20 to the EPFO and the body has already started crediting interest into members account for the last fiscal.

Labour Minster Santosh Gangwar said, “We had said that it would be our endeavour to provide 8.5 per cent rate of interest on EPF for 2019-20. We have issued a notification to provide 8.5 per cent rate of interest on EPF for 2019-20. We have also began the process to credit the said rate of interest into subscribers account.”

The minister also said that he has asked to ensure that all those members who are retiring on December 31, must get 8.5 per cent rate of interest (for 2019-20).

The process for capital gains for payment of 0.35 per cent interest for 2019-20 has also been completed, he added.

“It (8.5 per cent interest) would comprise 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020,” he said.

Earlier in the day, Gangwar had approved the 8.5 per cent rate for last fiscal after receiving the finance ministry’s concurrence. Thereafter the direction was sent to the EPFO for crediting the interest on EPF into the subscribers” accounts.

Leave a Reply

Your email address will not be published. Required fields are marked *