EPFO likely to credit interest before Diwali: Report

The Union Cabinet on July 14 approved a hike in DA and DR from 17 percent to 28 percent with effect from July 1, 2021. (Source: ShutterStock)

The Employees' Provident Fund Organisation (EPFO) might credit the interest for FY21 before Diwali, giving subscribers some relief amid the COVID-19 pandemic.

This will take place along with the hike in Dearness allowance (DA) and dearness relief (DR) given to central government employees and pensioners, Mint has reported.

Moneycontrol could not independently verify the story.

On March 4, the retirement fund manager said the 8.5 percent interest rate on PF deposits will be unchanged for fiscal year 2020-21.

The EPFO is expected to receive approval of the interest rate from the Ministry of Finance soon, Mint reported.

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"Authorities have sought the finance ministry's approval on going ahead with the 8.5 percent interest rate for 2020-21. When the decisions were made about the interest, all factors have been taken into account and the fund manager is well placed to pay 8.5 percent rate," an official told the publication.

"The equity market has grown very well since our last board meeting. This also gives us a cushion as our stock exposure has led to good earning even though it's notional till liquidation," another official said.

The Union Cabinet on July 14 approved a hike in DA and DR to 28 percent from 17 percent with effect from July 1, 2021.