Investments yielded 8.3% in the previous financial year, up from 14.7% in the previous financial year.

Federal Government Action

India: The Employees Provident Fund Organization (EPFO) has announced an 8.5% interest rate for employees.

The federal government has now decided to pay in two instalments. The government has taken this decision as revenue has been affected by the coronavirus infection.

Member of the 'CPT'

It is now offering an interest rate of 8.15 per cent for 2019 and 20 years. However, at present the remaining 0.35 per cent of the workers' provident fund ...

A member of the CPD of the Central Board of Trustees of the Workers' Provident Fund said they would be credited in December after the stock investments were recovered.

2,500 crore deficit

The CPT member also said that if the Labor Provident Fund offers its subscribers an interest rate of 8.5 per cent at a time, it will face a deficit of Rs 2,500 crore in 2019 and 20.

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The key decision was therefore taken at a meeting of the EPFO's Central Board of Trustees on Wednesday, chaired by Labor and Employment Minister Santosh Kumar Kanwar.

8 per cent in 1977 and 78

The 8.5 per cent interest rate is the lowest interest rate already in seven years. This is because, in the previous financial year, EPFO had been paying 8.65 per cent interest to its subscribers.

If the EPFO is unable to credit the remaining 0.35% interest rate in December of this year, this is the lowest interest rate return offered by the system since 1977 and '78.

Therefore, the Labor Provident Fund had earlier offered workers an interest rate of 8 per cent in 1977 and 1978.

in 2019 and 20th

Official data from the EPFO's Federal Board of Trustees confirm that EPFO's investments in the stock market have yielded negative returns in 2019 and 20.

Investments yielded 8.3% in the previous financial year, up from 14.7% in the previous financial year.

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It invested Rs 31,501 crores in the stock market and government securities in 2019-20, compared to an investment of Rs 27,974 crore in 2019 and 20th.

However, its returns were low. Therefore the interest rate for this financial year will be announced by the Ministry of Labor after the approval of the Ministry of Finance.