Due to the coronavirus (COVID-19) pandemic, the Employees Provident Fund Organisation (EPFO) on Wednesday decided to credit a lower interest rate of 8.15% for 2019-2020, with the credit of the remaining 0.35% being subject to the sale of exchange-traded funds (ETFs) by December 31.
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The EPFO Central Board of Trustees decided to credit the interest of 8.5% decided earlier this year in two phases, depending on the successful sale of ETFs.
“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 of 8.50% to the Central Government. It would comprise of 8.15% from debt income and balance 0.35% (capital gain) from the sale of ETFs subject to their redemption by December 31, 2020. It further recommended to account such capital gains in the income of the financial year 2019-20 as being an exceptional case”, a statement from the Labour and Employment Ministry said after a virtual meeting, chaired by Labour and Employment Minister Santosh Kumar Gangwar.
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Mr. Gangwar launched a virtual hearing facility for the quasi-judicial cases under the EPF & MP Act, 1952, it said.
The board also approved the enhancement of the maximum assurance benefit from ₹6 lakh to ₹7 lakh under the Employees’ Deposit Linked Insurance Scheme.
