The labour ministry is keen to retain an interest rate of 8.65 percent paid on provident fund deposits to around six crore subscribers of retirement fund body EPFO for the current financial year, a source said
Retirement fund manager EPFO is likely to appoint next week at its trustees' meet asset management firms HSBC AMC, UTI AMC and SBI Mutual Fund as its fund managers for a three-year term
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.
EPFO’s move to raise the investment limit in exchange traded funds to 15% from 10%, will help the retirement fund body park Rs15,000 crore in stock markets in FY18
The Finance Ministry has been following the cost reduction approach in the process spurning and undermining the more demanding income-enhancement approach.
EPFO had increased the wage ceiling to Rs 15,000 per month from Rs 6,500 on 1 September, 2014 in view of price rise and pay revisions in the formal sector.
The finance ministry said that small saving interest rates are perceived to limit the banking sector's ability to lower deposit rates in response to the monetary policy of the Reserve Bank of India.
EPFO is likely to appoint fund managers tomorrow for a three year term from 1 April and raise age limit for vesting of pension by two years to 60.
The government's decision to fix pension entitlement of Rs 1,000 under the Employees' Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present.<br />
The decision to retain the interest rate on the provident fund deposits at last year's level was taken despite some protest by the trade union members of the CBT
Government on Friday approved the proposal to ensure Rs 1,000 minimum monthly pension under a scheme of retirement fund body EPFO that would immediately benefit 28 lakh pensioners.
The EPFO has proposed an increase of service charges to Rs 75 and Rs 25 per month respectively for managing EPF and EDLI schemes for non-functional establishments having no contributory members.
Retirement fund body EPFO may announce higher interest rate on provident fund deposits for its over five crore subscribers in the current fiscal than 8.5 per cent that was provided in 2012-13.