New Delhi: EPFO Interest: 6 crore subscribers of EPFO (Employees’ Provident Fund) are going to get a gift at the end of this month. It has been reported by quoting sources that a huge amount is going to come in the accounts of PF account holders this month, because the Employees’ Provident Fund Organization ie EPFO can transfer 8.5% interest to the subscribers’ account for the financial year 2020-21, the government has announced it. given the green signal.
8.5% interest will come by the end of July
Quoting sources, it has been learned that after the approval of the Ministry of Labour, this 8.5% interest amount will come in the accounts of EPFO subscribers by the end of July. The process of transfer will be started soon after approval from the ministry. Prior to this, in the last financial year 2019-20 also, due to disturbances in KYC, many subscribers had to wait for a long time of 8 to 10 months to get interest. 6.44 crore people come under the purview of PF in the country.
PF interest rate at a low of 7 years
Let us tell you that the Central Body of Trustees (CBT), the apex body of the EPFO, had decided to retain the interest rates without any change for the financial year 2020-21 at 8.5%, which is the lowest level of the last 7 years. is. Prior to this, in the financial year 2013, the interest rates on EPF were 8.5%. In March last year, the EPFO had revised the interest. Earlier in the financial year 2019, 8.65 percent interest was available on EPF. EPFO had given 8.55 percent interest in FY2018, which was 8.8% in its previous financial year 2016. Prior to this, in the financial year 2014, it was 8.75 percent.
Let us tell you that the interest rate of EPF is decided by the Central Board of Trustees, the apex decision making body of EPFO. CBT involves the representatives of employers, employees and government. Once the CBT decides the interest rates, it is sent to the Finance Ministry for approval. When approval is received from the Finance Ministry, the interest is credited to the accounts of EPFO members. Salaried employees contribute around 12% of their basic salary plus dearness allowance every month to their provident fund accounts and so does the employer. 8.33% of this contribution of the employer goes to the Employees’ Pension Scheme (EPS) and the rest goes to the Employees’ Provident Fund account.
PF advance withdrawal facility available for the second time
Apart from this, in view of the second wave of Corona, EPFO has once again given relief to crores of its account holders. EPFO has given the facility to withdraw advance amount from PF for the second time. Earlier in March last year, EPFO had given this relief to its subscribers that they can withdraw their PF money in advance. This amount withdrawn is also non-refundable, that is, it does not need to be returned. The amount withdrawn will be deducted from their PF balance.