New Delhi: The Modi government has given a big gift to more than 60 million people of the country on Diwali. The Finance Ministry has given the green signal for payment of interest at the rate of 8.5 per cent on the provident fund (PF) for the financial year 2020-21. Media reports quoted Labour Secretary Sunil Varthwal as saying that the Finance Ministry on Friday approved payment of interest on PF at the rate of 8.5 per cent. Now the ministry will issue a notification very soon.

The Labour Ministry will issue a notification before the Employees' Provident Fund Organisation (EPFO) starts transferring benefits to the beneficiaries accounts. The government's move will save EPFO a surplus of Rs 300 crores. However, its surplus in the last financial year 2019-20 was Rs 1,000 crores. The Central Board of Trustees of the EPFO had in March this year approved an interest payment of 8.5 per cent on PF for 2020-21. This is the same as the interest payment made in 2019-20.

State that the Central Board of Trustees of the EPFO is headed by the Labour Minister and all major decisions related to EPFO are taken by the Same Board. Although the interest payment was decided in March, it is the finance ministry that puts the final seal on it.

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