EPFO gift: Six crore PF account holders will get interest before Diwali

Preparing to deposit EPFO ​​interest

It was recommended to pay 8.5 per cent interest on the amount deposited in PF for the financial year 2021

New Delhi: Ahead of the festive season, the Employees Provident Fund Organization (EPFO) has decided to please its 60 million members. The EPFO ​​is preparing to deposit the interest for the financial year 2020-21 in the accounts of PF account holders before Diwali, said two senior government officials.

An official said the EPFO ​​has approved an increase in interest by the central board and the retirement fund manager has sought the approval of the finance ministry. Approval is expected soon. However some argue that the approval of the Ministry of Finance is just a matter of protocol. EPFO cannot credit interest without its approval.

Another official said the last year and a half has been a source of trouble for the salaried and working class. Now his mood will be happy with the expected payment till Diwali. The board recommended an 8.5 percent payment for fiscal year 2021.

EPFO has projected revenue of about Rs 70,300 crore in the last financial year. It also includes revenue of about Rs 4,000 crore from the sale of a stake in its shares.

Following the Corona outbreak in 2020, the EPFO ​​reduced the interest rate on PF to 8.5 per cent in March 2020. Which is the lowest in the last seven years. The interest rate in the financial year 2018-19 was 8.65 per cent. However, in the financial year 2017-18, it was only 8.55 per cent. While for the financial year 2019-20 it was 8.5 per cent. EPFO members have been waiting for this interest for a long time. Following the economic crisis caused by Corona, many people have withdrawn money from PF to meet their needs. In these circumstances the news is a joy for them.

Private companies are also gearing up to give bumper bonuses to employees on Diwali after the Center and the state government provided expensive allowances to employees and pensioners. Representatives of several companies said that the last two years have been very difficult for the company and its employees but this time the situation is good. In this we are thinking of giving more bonuses to the employees.