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The Employees Provident Fund Organisation (EPFO), in December announced the transfer of interest in the Employees Provident Fund (EPF) accounts of about six crore account holders for the Financial Year 2019-20.
The rate of interest set by the government for Financial Year 2019-20 was 8.5 percent. Rate of interest is actually decided by Central Board of Trustees (CBT) which is a decision making body of EPFO. It is then sent to the Ministry of Finance which approves it.
This is followed by deposit of interest in the accounts of EPFO members.
The amount of Rs 2350.5 will be credited in the EPF account every month. This is the amount for which the interest will be provided for that month.
Taking annual interest rate as 8.5 percent, monthly interest rate will be 0.7083 percent. Same process is followed to calculate interest for the remaining months.
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