Subscribers to get 8.5% EPF savings interest at one go on 'market boost'

Private sector employees will soon get the declared interest rate of 8.5 per cent on their Employees’ Provident Fund (EPF) savings for the financial year 2019-20 at one go. The current bull market prompted the Employees’ Provident Fund Organisation (EPFO) to offload its equity investments and gain higher-than-expected returns in December – leaving it with double the surplus projected three months back, a senior EPFO official said, requesting anonymity.

Following the development, the Union labour and employment ministry has written to the finance ministry, seeking 8.5 per cent interest to be credited into around 190 million EPF accounts for 2019-20.

“The recommendation is pending approval of the finance ministry which is expected to come within a week. The labour ministry has proposed