Labour Minister Santosh Gangwar on Tuesday said over 6 crore Employees’ Provident Fund Organisation (EPFO) members would get 8.65 per cent interest on their deposits for 2018-19, PTI reported.
“Ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19,” PTI quoted Gangwar as saying on the sidelines of a function here.
The finance ministry has ratified the hike of the Employees Provident Fund (EPF) interest rate to 8.65% as approved by retirement fund manager EPFO. The finance ministry’s approval is a procedural formality, but is a requirement before interest rates are passed on to 60 million EPFO subscribers.
“The Department of Financial Services has accepted the EPFO rate hike and given its concurrence for a higher interest payout,” a labour ministry official said requesting anonymity.
On 21 February, the central board of the EPFO had announced an increase in the EPF interest rate to 8.65% in 2018-19, paring its reserves to their lowest level in three years.The proposal was sent for the concurrence of the finance ministry.
ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19, Mr Gangwar told reporters on the sidelines of a function here.
This was a 10 basis point increase from the 8.55% EPF interest rate announced by the retirement fund for 2017-18. It is the same as in 2016-17, but less than the 8.8% paid out in the previous years. One basis point is one-hundredth of a percentage point.
The Central Board of Trustees — the top decision-making body of the Employees’ Provident Fund Organisation — had in February this year approved an interest rate of 8.65 per cent rate for the financial year 2018-19.
At present, retirement fund body EPFO is settling provident fund (PF) withdrawal claims at the interest rate of 8.55 per cent, which was approved for the financial year 2017-18.
