Personal Finance

EPFO Declares 60 days’ Productivity-Linked Bonus for Diwali

The Employees’ Provident Fund Organisation (EPFO) has declared a Diwali gift to its employees. The decision-making board has decided to give 60 days of the productivity-linked bonus (PLB) to all Group ‘B’ (non-gazetted) and Group ‘C’ employees for the financial year 2018-19. 

The notification stated that the bonus is assessed based on the information submitted by the zonal offices. The payments will follow the terms and conditions issued by the Ministry of Finance.

Usually, the formula used to calculate the bonus is (Average Emoluments x Number of days)/30.4. Here, 30.4 stands for the average number of days in a month.

On the other hand, EPFO announced that the process of crediting interest to provident fund accounts has started. Many EPF account holders have received interest in their accounts at the rate of 8.65% for the financial year 2018-19. 

It was estimated that the total interest outflow for EPFO stands at Rs.54,000 crore. 

The interest rate on PF contributions was increased at the beginning of the year, for the first time in the last three years.

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in

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