The rate of interest on EPF was hiked to eight.65 per cent for the final fiscal from 8.55 per cent offered in 2017-18
The Finance Ministry has authorised 8.65 per cent charge of curiosity on Staff’ Provident Fund (EPF) for 2018-19 as determined by retirement fund physique EPFO, benefitting greater than 6 crore formal sector employees.
“The Division of Monetary Companies (DFS), a wing of Finance Ministry, has given its concurrence to Staff Provident Fund Organisation’s (EPFO) choice to supply 8.65 per cent charge of curiosity for 2018-19 to its subscribers,” a supply aware of the event advised PTI.
“The DFS has authorised the proposal topic to fulfilment of sure circumstances associated to environment friendly administration of the retirement fund,” the supply stated additional.
Earlier in February, the EPFO’s apex choice making physique Central Board of Trustees headed by Labour Minister Santosh Gangwar had determined to boost the rate of interest on EPF to eight.65 per cent for 2018-19, which was the primary enhance within the final three years.
The rate of interest on EPF was hiked to eight.65 per cent for the final fiscal from 8.55 per cent offered in 2017-18. The EPFO had earlier decreased the rate of interest in 2016-17 to eight.65 per cent from 8.Eight per cent in 2015-16.
After the Finance Ministry concurrence, the Earnings Tax Division and the Labour Ministry would notify the speed of curiosity for 2018-19. Thereafter the EPFO would give instructions to its over 120 subject workplaces to credit score the speed of curiosity into subscribers’ account and settle their claims accordingly.
In accordance with the EPFO estimates, there could be a surplus of Rs 151.67 crore after offering 8.65 per cent charge of curiosity for 2018-19 on EPF. There would have been a deficit of Rs 158 crore on offering 8.7 per cent charge of curiosity in EPF for final fiscal. That’s the reason the physique determined to supply 8.65 per cent charge of curiosity for 2018-19.
The EPFO had offered a five-year low-interest charge of 8.55 per cent to its subscribers for 2017-18.