NEW DELHI: The Employees’ Provident Fund Organisation (EPFO) on Thursday said it will pay an 8.5% interest for fiscal 2020-21, unchanged from last year.
The EPFO’s central board of trustees, meeting in Srinagar today, ratified the 8.5% interest rate after examining earnings and financial positions, two board members told Mint. A formal announcement is likely in a few hours.
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“The earnings of EPFO in the current fiscal is around Rs65,000 crore and this gives us enough room to pay 8.5% this year,” said a board member.
The financial advisory committee of EPFO had met on Wednesday and the retirement fund body’s board had been recommended to retain interest at 8.5%.
While the 8.5% interest payout will cheer over 50 million subscribers, anything less than that could be the lowest in a decade.
The interest payout for 2019-20 was in the news for several reasons including delay in sale of equity and credit of interest, talks of paying it in two installments and doubts on whether EPFO can actually pay 8.5% following the pandemic-induced economic downturn in 2020.
When the fund decided to credit the amount, almost 4 million EPFO subscribers could not receive it in due time because of KYC mismatches.