There were speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 per cent given in 2019-20 in view of more withdrawals and lesser contribution by members amid the coronavirus pandemic.
In a meeting with the representatives of employers the other day, the government authorities hinted about increasing the existing upper salary cap for the PF pension from Rs 15,000 to Rs 21,000.
The Kerala government has issued an order increasing the social security and welfare pensions from Rs 1,400 to Rs 1,500 from this month.
A large number of members of the Employees Provident Fund Organisation (EPFO) would be able to see their updated EPF accounts with credit of 8.5 per cent rate of interest for 2019-20.
A higher pension would carry a huge financial burden even if the unclaimed amount in the EPFO is used for this purpose, EPFO officials said.
The EPFO will provide 8.15 per cent interest on EPF soon and the remaining 0.35 per cent rate would be credited into the subscribers' account by December 31.
This includes, those who are yet to get pension and those pensioners who have filed application to get higher pension.
Union Labour Minister Santosh Gangwar told that over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19 ahead of the festival season.
There will be no need to submit an application for the purpose.
All members of the Central Board of Trustees at a meeting agreed to give a higher interest for subscribers for the current fiscal.