In a recent meeting of the Employees’ Provident Fund Organization’s (EPFO) it was announced that the government will pay an 8.5% interest on EPF to its subscribers for FY 2019-20. It will be paid in two installments instead of one as income from equity investment is by the pandemic crisis.
Due to Covid-19, the first part of 8.5% PF interest, which is 8.15% will be credited from its income from debt investment to the subscribers’ accounts.
The crediting of the remaining 0.35% of the PF interest is yet to be decided by the Central Board of Trustees. But It will be paid from the sale of investment in exchange-traded equity funds.
Other highlights from this meeting include:
- Launched virtual hearing facility in quasi-judicial cases under EPF and MP Act, 1952 through Video conferencing. It eliminates the physical presence of parties in hearings. They can appear for hearings from any remote location. Therefore, it will save time, travel, and expenditure. It will ensure social distancing norms are kept and also result in a fast track assessment of worker’s EPF dues.
- Amendment of paragraph 22(3) of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976. As a result, an increase in maximum assurance benefit to Rs. 7 lakhs from Rs. 6 lakhs.
- Recent IT initiatives to make EPFO a paperless organization using the latest trends and technology. They also use existing initiatives of other Government Departments and makes use of its in-house capabilities for internal services.
With that, we end this post with a new update on the interest on EPF.