Raj Express The Employees Provident Fund Organization will now pay 8.5 per cent curiosity to its members on their provident fund (PF) as an alternative of 8.65 per cent. The rates of interest have been reduce by 0.15 per cent for the FY 2019-20. According to Union Labor Minister Santosh Gangwar, the brand new rate of interest is now the bottom within the final 7 years. Earlier within the monetary 12 months 2012-13, the rate of interest on PF was 8.5 %.
The Employees Provident Fund Organization (EPFO) was anticipated to scale back the rate of interest on provident fund (PF) deposits at a gathering of the Central Board of Trustees on March 5, resulting from decrease returns on funding. <! –
In reality, the returns to EPFO from long-term FDs, bonds and authorities securities have decreased by 50-80 foundation factors all year long.
ESIC has diminished the speed of month-to-month ESI contribution from 4.75% to three.25% for employers and from 1.75% to 0.75 for workers.#ESIC #Employers #Employees # 68yearsofESIC pic.twitter.com/W4pLNEDBeQ
– ESIC (@esichq) March 5, 2020
Santosh Gangwar, Labor Minister of the Government of India mentioned after the assembly, "EPFO has determined to pay 8.5 % curiosity on provident fund deposits for 2019-20 within the assembly of CBT today. The minister mentioned that EPFO could have a surplus of Rs 700 crore by paying 8.5 % curiosity on Employees Provident Fund deposits within the present monetary 12 months.
According to info acquired from media reviews, EPFO has invested greater than Rs 18 lakh crore. Of this, about Rs 4500 crore has been invested in Dewan Housing Finance Corporation and Infrastructure Leasing and Financial Services. Both of them are dealing with problem in paying. While DHFL goes via a bankrupt decision course of, authorities surveillance is happening to avoid wasting IL&FS. Had the EPFO paid 8.55 per cent curiosity, it will have had a surplus of Rs 300 crore. The EPFO would have misplaced out on paying extra curiosity.