Govt may keep PF interest rates unchanged at 8.65%; good news for employees

With a fragile victory in the Gujarat elections, and the general elections in 2019, the the Modi government is unlikely to do anything that will upset people

FP Staff January 22, 2018 09:37:04 IST
Govt may keep PF interest rates unchanged at 8.65%; good news for employees

The Narendra Modi government may not tinker with interest rates on the Employees Provident Fund Organisation (EPFO) anytime soon. The interest rates will remain at 2017 level of 8.65 percent, according to a report in The Indian Express. Instead, what the Modi government will do is dip into shares held by the EPFO for the extra 0.15 percent payout, the report said.

With a fragile victory in the Gujarat elections, and the general elections in 2019, the the Modi government is unlikely to do anything that will upset people. In 2015, EPFO brought some shares which the government is planning to sell for the additional 0.15 percent payout, the IE report said.

Govt may keep PF interest rates unchanged at 865 good news for employees

Representational image. PTI

The government is considering to raise equity investment for EPFO from 15 percent to 25 percent to explore wider investment options to maximize returns, The Economic Times had reported earlier.

Sources told Indian Express that shares worth Rs 2000 cr would be sold by the EFPO. This would be done for an additional income of Rs 850 crore due to the markets doing well. The additional income would be part of total earnings to determine PF rate, the IE report said.

Updated Date:

also read

PM Modi to lay foundation stone of Major Dhyan Chand Sports University in Meerut today
India

PM Modi to lay foundation stone of Major Dhyan Chand Sports University in Meerut today

The Sports University will be equipped with modern and state-of-the-art sports infrastructure including synthetic hockey ground, football ground, basketball, volleyball, and handball among others

How Hindutva’s holistic approach will guide our life in post-COVID world
India

How Hindutva’s holistic approach will guide our life in post-COVID world

The Hindutva concepts of namaste, yoga and Ayurveda can form the bedrock on which the post-Covid order can build and strengthen

Narendra Modi to visit Punjab on 5 January, lay foundation stone of projects worth over Rs 42,750 crores
India

Narendra Modi to visit Punjab on 5 January, lay foundation stone of projects worth over Rs 42,750 crores

Among other projects, the prime minister will lay the foundation stone of a new Broad Gauge railway line between Mukerian and Talwara of around 27 kilometres in length, to be built at a cost of over Rs 410 crore