EPFO hikes interest rate on provident fund deposits to 8.65% for 2018-19; 6 crore subscribers to benefit: Govt
The EPFO had provided a five-year low rate of interest of 8.55 percent to its subscribers for 2017-18.
The proposal will now go to the finance ministry for approval
The interest rate is credited into the subscribers account after the finance ministry's approval
EPFO had provided a five-year low rate of interest of 8.55 percent for 2017-18
New Delhi: Retirement fund body Employees' Provident Fund Organisation (EPFO) has decided to provide 8.65 percent interest on provident fund deposits for 2018-19 against 8.55 percent in the last year to its 6 crore subscribers, Labour Minister Santosh Gangwar said on Thursday.
All members of the Central Board of Trustees (CBT) of EPFO at a meeting here agreed to give a higher interest for subscribers for the current fiscal, the minister said further.
The proposal would now go to the finance ministry for approval, Gangwar said after the CBT meeting.
Earlier, highly placed sources had indicated that the interest on EPF deposits for this fiscal could be more than 8.55 percent in view of impending general elections.
The Central Board of Trustees (CBT) headed by labour minister is the apex decision making body of the EPFO which finalises rate of interest on provident fund (PF) deposits for a financial year.
Once approved by the CBT, the proposal requires the concurrence of the finance ministry. The interest rate is credited into the subscribers account after the finance ministry's approval.
The EPFO had provided a five-year low rate of interest of 8.55 percent to its subscribers for 2017-18. The body had kept the interest rate at 8.65 percent in 2016-17 and 8.8 percent in 2015-16.
It provided 8.75 percent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 percent in 2012-13.