EPFO to pay interest for FY 2019-20 in two instalments

The Employees Provident Fund Organisation (EPFO) has decided to pay the interest for FY 2019-20 in two instalments. The first instalment consisting of 8.15% is due for immediate payment. The second instalment of 0.35% will be due for credit in December 2020.

The EPFO had earlier notified 8.5% as interest for the FY 2019-20. However, due to market volatility affecting its liquidity, it could not make the interest payment due on 31 March 2020.

Also Read: Why Save for Your Daughter Through Sukanya Samriddhi Yojana (SSY)?

The matter of credit of EPF interest was a concern raised by several subscribers, and the interest payment is due since 31 March 2020. In a recent meeting of the EPFO’s board, it decided to immediately pay 8.15% interest from its income from debt investment. 

The board has decided to meet again and decide on liquidation of its investment in various exchange-traded funds. The EPFO will use the proceeds from the sale to make the payout of the second instalment of 0.35% in December 2020.

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

You May Also Like

Save Your Tax By Claiming Medical Expenditure Under Section 80D

The current financial year is near to end on 31st March. You…

EPFO lowers the interest rate on PF deposits to 8.5% for FY 2019-20

The Employees’ Provident Fund Organisation (EPFO) has notified the interest rate for…

Senior Citizens: PMVVY or SCSS investment scheme, which one is best?

Due to a fall in the interest rates offered on fixed deposits…

Pensioners Who Opted for Commutation To Receive Higher Pension

According to a notification sent by the labour ministry dated 20 February…