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EPFO To Release Interest Rate In March For The FY 2020-21

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The interest rate of the employees' provident fund for 2020-21 is expected to be revealed in the first week of March when retirement fund directors sit in Srinagar to review their revenues and financial status. On Monday, the Employees' Provident Fund Organization (EPFO) addressed its Central Board of Trustees (CBT) representatives about the discussion set for 4 March. In the days ahead, the specifics and purpose for the discussion will be published, the EPFO Head Office stated. For many factors, the interest rate for 2019-20 was in the headlines, namely pause in the offering of equity and interest credit, discussions of issuing it in two installments, and concerns as to whether EPFO would possibly pay 8.5 per cent in 2020 after the economic slowdown for COVID-19. More than 50 million existing EPFO members and even more dormant subscribers will actively track the 2020-21 interest payout as to whether EPF will keep the rate the same or not. For the current year now, the CBT will have to take a decision on the interest payoff.

EPFO To Release Interest Rate In March For The FY 2020-21
 

That being said, the finance advisory board will have to reach the final estimates before the CBT meets and propose potential interest rates for the board to determine according to the CBT. The representative stated that Rs 61,000 crore had been raised by the retirement fund administrator in 2019-20, with Rs 58,000 crore resulting from its debt assets and about Rs 3,000 crore from equity funds. The conference of the CBT in Srinagar appears almost a year and a half after the EPFO launched in November 2019, after the termination of Article 370 of the Constitution, to include establishments in Jammu and Kashmir. That being said, in Jammu and Kashmir, EPFO comprises establishments of 10 or more employees, whereas, for establishments in the rest of India, it is 20 or even more. And over 2,000 firms in the Union territory are now covered by EPFO. In January 2020, EPFO was urged by the Ministry of Labour to result in assimilating new in the region with the rest of India by stronger pension benefits, better insurance and interest rates, and lower social welfare expenses.

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Story first published: Tuesday, February 16, 2021, 10:18 [IST]
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