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

Farmers' protest will stop only after farm laws are repealed in Parliament, says Rakesh Tikait
India

Farmers' protest will stop only after farm laws are repealed in Parliament, says Rakesh Tikait

He also stressed that the government should talk to farmers over the issue of minimum support price (MSP) of crops and other matters

Farm law repeal: Lessons for Narendra Modi and his government
Politics

Farm law repeal: Lessons for Narendra Modi and his government

The worry is that after this decision, the possibility of serious debate among stakeholders and political parties on farms reforms with which they have grappled for years, if not decades, is unlikely to happen in the near future.

Opinion | Five reasons why PM Modi's rollback of farm laws is politically noxious and logically unjustifiable​​
India

Opinion | Five reasons why PM Modi's rollback of farm laws is politically noxious and logically unjustifiable​​

It had taken considerable moral courage for the Modi government to take on vested interests in the most difficult of sectors where no meaningful reforms had taken place since Independence. The question, therefore, must be asked: to what end?