EPFO Likely to Pay Interest Before Diwali 2021, Finance Ministry's Approval Awaited: Report

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New Delhi, September 6: The Employees’ Provident Fund Organisation (EPFO) is likely to credit the interest for FY21 ahead of Diwali. It may give some relief to subscribers amid the COVID-19 pandemic. Dearness allowance (DA) and dearness relief (DR) for the central government employees and pensioners are also likely to be hiked, reported the Mint. There are aaround six crore EPFO subscribers. New EPFO Rule: Employees' Provident Fund Contribution of Over Rs 2.5 Lakh in a Fiscal Year Now Requires 2 Separate PF Accounts.

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The EPFO’s central board has reportedly approved the interest hike. However, the Finance Ministry is yet to give the nod to the move. “Authorities have sought the finance ministry’s approval on going ahead with the 8.5% interest rate for 2020-21. When the decisions were made about the interest, all factors have been taken into account, and the fund manager is well placed to pay 8.5% rate,” reported the media house quoting an official as saying. EPFO Exit Date Update: How to Mark Job Leaving Date On EPF Portal Online Via epfindia.gov.in, Know Steps.

Notably, with the ministry’s approval is necessary to hike the interest rate. In March this year, the EPFO keep interest rates on Provident Fund deposits for the financial year 2020-21 unchanged at 8.5 percent. For FY 2021, EPFO decided to liquidate an investment in and the interest rate recommended is a result of combined income from interest received from debt investment as well as income realised from equity investment.

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Notably, the EPF interest rate was reduced to 8.5 percent during the financial year 2019-20, which was 8.65% during FY 2018-19. Meanwhile, the interest rates of other saving schemes, including the public provident fund (7.1%) and the national savings certificate, are – 7.1 percent and 6.8 percent, respectively.

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