EPFO recommending splitting payment of EPF interest rate

Context:

The Central Board of Trustees of the Employees Provident Fund Organization (EPFO) recommended splitting payment of the interest rate of 8.5% for 2019-20 into two parts.

Taking in account the exceptional circumstances arising out ofcovid19 ,  EPFO’s Central Board of Trustees has recommended splitting payment of the interest rate of 8.5% recommended for 2019-20 into two parts. The EPFO will credit 8.15% to its over six crore subscribers for the year immediately. The remaining 0.35%, which is linked to its equity investments, will be subject to redemption of its units invested in exchange-traded funds before December 31.

EPFO:

• EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 19.34 crore accounts (Annual Report 2016-17) pertaining to its members.
• The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’ Provident Funds Act, 1952.
• The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.
• The Central Board of Trustees administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
• The EPFO is under the administrative control of Ministry of Labour and Employment