EPFO gave a blow to six crore staff, made such an announcement

by Jeremy Spirogis
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new Delhi.

There is unhealthy information for six crore salaried staff earlier than Holi. The Employees Provident Fund Organization (EPFO) introduced on Thursday to chop rates of interest on provident fund (PF) deposits. The EPFO ​​has determined to chop rates of interest on PF deposits by 15 foundation factors for the monetary 12 months 2019-20, attributable to decrease return on funding.

Interest will now be paid on the price of 8.5 p.c for 2019-20. Earlier, the speed of curiosity on PF deposits was 8.65 p.c within the monetary 12 months 2018-19.

The assembly of the Central Board of Trustees (CBT) of the EPFO ​​was held on 5 March below the chairmanship of Labor Minister Santosh Gangwar. <! –

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                 After the assembly, Labor Minister Gangwar mentioned that the earnings from long-term mounted deposits (FDs), bonds and authorities securities (G-Sec) has decreased by 50-80 foundation factors final 12 months, attributable to which the EPFO ​​is allowed to run within the present monetary 12 months. I’ve to face problem in protecting the rates of interest unchanged.

Now the Ministry of Labor will take approval from the Ministry of Finance on this. The authorities of India is its guarantor so the Finance Ministry assesses the rate of interest proposal on the EPF. The Finance Ministry is pressurizing the Ministry of Labor to align the EPF rate of interest according to different small financial savings schemes run by the federal government such because the Public Provident Fund and Post Office Savings Schemes.

The EPFO ​​paid 8.65 per cent curiosity to its account holders within the monetary 12 months 2016-17. In 2017-18, EPFO ​​paid curiosity on the price of 8.55 p.c. The price of curiosity was 8.Eight p.c within the monetary 12 months 2015-16. In FY 2013-14 and 2014-15, EPFO ​​paid curiosity at 8.75 per cent and in FY 2012-13 at 8.5 per cent.

EPFO has invested Rs 4500 crore in two troubled non-banking monetary establishments (NBFCs) – Dewan Housing Finance (DHFL) and Infrastructure Leasing and Financial Services (IL&FS). The reconciliation course of is occurring for each firms for the time being, so there’s little or no likelihood of early restoration.

The EPFO ​​has invested a complete of Rs 18 lakh crore, of which 85 per cent is within the debt market and 15 per cent in equities via exchange-traded funds (ETFs). As of March 2019, EPFO's funding in fairness is Rs 74,324 crore, on which it has earned a return of 14.74 per cent.

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