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

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…

Pensioners Who Opted for Commutation To Receive Higher Pension

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

Here’s What You Should Know About Overdraft Facility

The overdraft facility can be considered as a kind of a loan.…

Will Your Old EPF Account Become Inoperative When You Switch Jobs?

You know that a new EPF account will be created every time…