EPFO interest amount credited to PF account! Good news from Modi government as 2021 set to begin

EPFO Latest News: In a good news for Employees' Provident Fund Organisation subscribers, EPFO has credited 8.50% interest amount to the PF account holders, as per sources. The interest amount has been transferred to over 6 crore EPFO subscribers. The money has been credited to EPFO account in one go as lumpsum amount.

However, earlier it was reported that the Employees' Provident Fund Organisation (EPFO) will pay 8.50 per cent interest rate to the formal sector employees for the last fiscal year in a staggered manner due to the impact of the coronavirus pandemic - in 2 installments.

The total payment by EPFO would include 8.15 per cent interest rate from debt income and the balance 0.35 per cent from the sale of ETFs subject to their redemption by December 31, 2020, said an official statement.
The decision was at the meeting of EPFO's Central Board.

"In view of exceptional circumstances arising out of Covid-19, the agenda regarding interest rate was reviewed by the Central Board and it recommended the same rate at 8.50 per cent to the Central government. It would comprise of 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs subject to their redemption by 31st December, 2020," the Labour and Employment Ministry statement had said.

The Central Board also recommended to account such capital gains in the income of the financial year 2019-20 as being an exceptional case.

It also accorded approval for amendment of paragraph 22(3) of Employees' Deposit Linked Insurance Scheme, 1976 to enhance the maximum assurance benefit to Rs 7 lakh from the present maximum assurance benefit of Rs 6 lakh.

"This amendment will provide additional succour to families and dependents of members of the scheme in case of their unfortunate death while in service," it said.