The Group of the Caisse de Prévoyance des Workers (EPFO) has introduced the upkeep of an rate of interest of 8.5% on the deposits of the Caisse de Prévoyance for the present fiscal 12 months 2020-21. “The rate of interest could be formally notified within the official gazette, after which EPFO would credit score the rate of interest to subscribers’ accounts,” the Ministry of Labor and Employment mentioned in a press release. EPFO has over 5 million lively subscribers.
“Since fiscal 2014, EPFO has constantly generated returns of not less than 8.50%. A excessive EPF rate of interest related to membership makes a big distinction in subscriber earnings, ”the assertion mentioned.
1) There was hypothesis that the pension fund could decrease rates of interest on provident fund deposits for fiscal 12 months 2020-2021 after financial downturn from COVID-19 all through 2020 Nonetheless, the pension fund determined to maintain the rate of interest unchanged.
2) Final 12 months, in March, EPFO minimize the rate of interest on provident fund deposits to a 7-year low of 8.5% for 2019-20. The board mentioned earlier it will pay 8.5% curiosity to its subscribers for the 12 months ended March 31 in two installments – 8.15% on debt investments and 0.35% on fairness .
3) The rate of interest was 8.65% in 2018-2019. The EPFO had offered an rate of interest of 8.55% to its subscribers for 2017-2018. The rate of interest was 8.65% in 2016-2017.
4) “Through the years, EPFO has been capable of distribute increased earnings to its members, by means of numerous financial cycles with minimal credit score threat. Given the excessive credit score profile of EPFO funding, EPFO’s rate of interest is significantly increased than different comparable funding avenues out there to subscribers, ”the ministry mentioned.
5) “For fiscal 12 months 2021, EPFO has determined to liquidate the investments in and the really useful rate of interest is the results of the mixed curiosity earnings obtained from the debt funding in addition to the earnings earned on the investments in This has enabled EPFO to supply a greater return to its underwriters. and nonetheless permitting EPFO with a wholesome surplus to behave as a cushion to supply the next return sooner or later as properly, ”the assertion mentioned. .