The Modi government is getting ready to deliver some good news to crores of people who work in the private sector. This time, employees will not have to wait until the end of the year to receive their PF interest. The government is expected to transfer interest money to all PF account holders before the festive season, according to reports.
Waiting for Finance Minister’s Approval:
According to reports, the PF interest rate is still low, therefore it can be credited before December. Because the current rate of interest on PF is the lowest in 43 years, it is believed that the Finance Ministry would provide approval soon. After then, interest can be credited to EPFO members' PF accounts at any time.
The Finance Ministry is expected to approve the proposal this month. According to reports, interest money can be distributed to PF account holders anytime this month, before June 30, after the Ministry of Finance approves it.
Lowest Interest After Several Decades:
The interest rate on PF is currently at its lowest level in decades. EPFO has set the PF interest rate for 2021-22 at 8.1 percent. Since 1977-78, this is the lowest rate of interest on PF. Before 2020-21, PF got an interest rate of 8.5 percent. In the fiscal year 2020-21, the PF interest rate remained unchanged (FY21). This interest rate decreased from 8.65 percent to 8.5 percent just a year ago, in 2019-20.
At the same time, some reports claim that EPFO will be able to credit the interest money before the Dussehra-Deepawali festival. However, neither EPFO nor the government has issued any official statements on the subject. PF interest is usually credited at the end of the year. EPFO is not expected to credit until December this time due to the low-interest rate. More than 6.5 crore EPFO subscribers will profit from this.
Invest your PF Money Here:
EPFO invests the money deposited in PF account holders' accounts in several ways. The account holders receive a portion of the earnings from this investment in the form of interest. EPFO now invests 85% of its funds in debt options. Government securities and bonds are also included. The remaining 15% is invested in exchange-traded funds (ETFs). The interest rate on a PF account is determined by the amount of money earned from debt and equity.
