PF interest rate hiked to 8.65% in good news for aam aadmi
Retirement fund body EPFO on Thursday announced an interest rate of 8.65 per cent on PF deposits for 2018-19, to its six crore subscribers.
"The proposal to declare interest rate for this fiscal is on the agenda of the Employees' Provident Fund Organisation (EPFO) trustees meeting on February 21, 2019," a source had earlier said.
The interest rate was at 8.55 per cent for this fiscal as provided in 2017-18.
All members of the Central Board of Trustees (CBT) of EPFO at a meeting in New Delhi agreed to give a higher interest for subscribers for the current fiscal, Labour Minister Santosh Gangwar said.
The proposal would now go to the Finance Ministry for approval, Gangwar said after the CBT meeting.
Earlier, highly placed sources had indicated that the interest on EPF deposits for this fiscal could be more than 8.55 per cent in view of impending general elections.
The Central Board of Trustees (CBT) headed by Labour Minister is the apex decision making body of the EPFO which finalises rate of interest on PF deposits for a financial year. Once approved by the CBT, the proposal requires the concurrence of the Finance Ministry. The interest rate is credited into the subscribers account after the Finance Ministry's approval.
The EPFO had provided a five-year low rate of interest of 8.55 per cent to its subscribers for 2017-18. The body had kept the interest rate at 8.65 per cent in 2016-17 and 8.8 per cent in 2015-16. It provided 8.75 per cent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 per cent in 2012-13.
(With inputs from agencies)