Good news: EPFO raises interest rate on PF money, more than 6 crore people to benefit
PF money withdrawal: There's great news for people with provident fund money (PF Money). The Employees' Provident Fund Organisation (EPFO) has approved 8.65 per cent interest rate. The existing interest rate was 8.55 per cent.
Labour Minister Santosh Gangwar Tuesday said over 6 crore EPFO members will get 8.65 per cent interest on their deposits for 2018-19. "...ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19," Gangwar told reporters on the sidelines of a function.
Earlier in February this year, the EPFO's (Employees' Provident Fund Organisation) apex decision-making body Central Board of Trustees, headed by the labour minister, had decided to raise the interest rate on EPF to 8.65% for the year 2018-19, the first increase in the past three years.
The proposal was sent for the concurrence of the finance ministry.
"The finance ministry does not disagree with 8.65% interest on EPF for 2018-19. I believe that it will soon be notified," Gangwar had said on the sidelines of a FICCI meet last month.
At present, the EPFO is settling PF withdrawal claims at 8.55 per cent interest rate, which was approved for 2017-18.
According to the EPFO's estimates, there would be a surplus of Rs 151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF.
There would have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest on EPF for the previous financial year. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19.
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