Even before Diwali, the Modi government has given big gifts to 6 crore PF account holders in the country. The Finance Ministry has allowed 8.5 per cent interest on PF for the financial year 2020-21. ET has given the news quoting Labor Ministry Secretary Sunil Warthwal. The finance ministry on Friday approved an 8.5 per cent interest rate on PF. Now the ministry will issue a notification soon. The notification will be issued before EPFO starts turning interest into PF account holders.
The government's move will leave EPFO with a balance of Rs 300 crore. Last year there was a surplus of Rs 1000 crore in 2019-20. The Central Board of Trustees of EPFO had in March this year approved to pay 8.5 per cent interest on PF for 2020-21. The same interest was paid in 2019-20. Although the decision was made in March, it is approved by the Ministry of Finance and is then implemented.