15C
Delhi
Wednesday, January 20, 2021

EPFO to provide 8.5 pc interest rate on EPF for FY20

- Advertisement -

People withdrawing money from PF to take advantage of rebateNew Delhi, Sep 9 (PTI) Retirement fund body 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, Employees” Provident Fund Organisation”s (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 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 per cent to the Central Government.

“It (8.5 per cent interest) would comprise of 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020,” the statement said.

The board has recommended accounting such capital gains (from sale of ETFs) in the income of the financial year 2019-20 as being an exceptional case.

READ ALSO:  People withdrawing money from PF to take advantage of rebate

According to a source, the EPFO will provide 8.15 per cent interest on EPF soon and the remaining 0.35 per cent rate would be credited into the subscribers” account by December 31, after proposed liquidation of ETFs.

The EPFO had earlier planned to liquidate some of its investment in ETFs to provide 8.5 per cent interest for the last fiscal.

However, it could not do so because of the choppy market conditions amid the lockdown, induced by COVID-19.

Now after reassessing the situation, the CBT found that the EPFO can provide 8.5 per cent interest rate on EPF for 2019-20.

Besides, the CBT also decided to hike the maximum sum assured payable under Employees” Deposit Linked Insurance Scheme 1976 to Rs 7 lakh from existing Rs 6 lakh.

“The Central Board accorded approval for amendment of paragraph 22(3) of Employees’ Deposit Linked Insurance Scheme (EDLI), 1976 to enhance the maximum assurance benefit to Rs 7 lakhs from the present maximum assurance benefit of Rs 6 lakhs,” the statement said.

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

READ ALSO:  Pakistan briefs P-5 envoys on its dossier against India
READ ALSO:  Supporting Bharat Bandh shows hypocrisy of political parties, say top ministers

The CBT was also informed that the actuarial valuation of EDLI Fund has allowed for continuation of minimum assurance benefit of Rs 2.5 lakh beyond February 14, 2020, and extension of minimum assurance benefit of Rs 2.5 lakh to the family of those deceased members who were employed in multiple establishments during the 12 months preceding the month in which they died, as approved by the board in its 226th meeting.

During the meeting, Gangwar also launched virtual hearing facility in quasi-judicial cases under EPF&MP Act, 1952 through video conferencing.

The aim of integration of virtual hearing utilities with EPFO”s e-Court process on Compliance e-Proceedings Portal is to eliminate the physical presence of parties in hearings before Adjudicating Officer.

The system entails savings on time, travel and expenditure for parties, ensures compliance to social distancing norms during the pandemic and fast tracks assessment of worker”s EPF dues to generate better confidence in the quasi-judicial mechanism.

It is a critical development towards the objective of faceless quasi-judicial proceedings in the EPFO. PTI KKS KKS BAL BAL

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

New Google Chrome update comes without Adobe Flash

New Delhi, Jan 20 (IANS): Google has released Chrome 88 as the latest stable version of their cross-platform web browser without any support for Adobe...

Microsoft joins GM to build self-driving cars, invests in $2bn fund

San Francisco, Jan 19 (IANS) Before Apple begins its electric car journey, Microsoft on Tuesday teamed up with Cruise, the self-driving subsidiary of General...

Amazon ties up with Startup India to boost e-commerce exports

Bengaluru, Jan 19 (IANS) E-commerce major Amazon has partnered with Startup India to launch an accelerator programme to help early-stage startups in the consumer...

IBC changes for starting proceedings against corporate debtor valid: SC

New Delhi, Jan 19 (IANS) The Supreme Court on Tuesday upheld the constitutional validity of amendments to the Insolvency and Bankruptcy Code (IBC) in...