EPFO to provide 8.5 per cent interest rate on EPF for 2019-20

NATIONAL | Sept 10, 2020:

Retirement fund body – Employees Provident Fund Organisation (EPFO) on Wednesday decided to provide 8.5 per cent rate of interest on employees provident fund (EPF) for 2019-20 as committed earlier.

In March this year, EPFO apex decision making body Central Board of Trustees headed by Labour Minister Santosh Gangwar had approved 8.5 per cent interest rate on EPF for last fiscal.

In a virtual CBT meeting on Wednesday, the EPFO has decided to provide 8.5 per cent rate of interest, a labour ministry statement said.

"In view of the circumstances arising out of Covid-19, the Central Board has recommended the same interest rate at 8.50 per cent to the Central Government.

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It would comprise of 8.15 per cent from debt income and balance 0.35 per cent capital gain from the sale of Exchange Traded Funds, ETFs subject to their redemption by 31st December 2020," read the statement.

It further recommended accounting such capital gains in the income of the financial year 2019-20 as being an exceptional case.

The Central Board accorded approval for an Amendment to Employees' Deposit Linked Insurance Scheme, 1976 to enhance the maximum assurance benefit to 7 lakh rupees from the present maximum assurance benefit of 6 lakh rupees.

The Amendment will provide additional succour to families and dependents of members of the Scheme in case of their unfortunate death while in service.

On the occasion, Gangwar launched the virtual hearing facility in quasi-judicial cases under Employees Provident Fund and Miscellaneous Provisions Act, 1952 through Video conferencing by use of secure IT applications compatible with Desktop, Laptop and Mobile Phones.

The aim of integration of virtual hearing utilities with EPFO's e-Court process on Compliance e-Proceedings Portal https://eproceedings.epfindia.gov.in is to eliminate physical presence of parties in hearings before Adjudicating Officer leading to ease and convenience for employers and employees to appear in hearings from remote location of their choice.