It's official: EPF interest rate hiked to 8.65 per cent, amount to be credited ahead of festivals
Government of India has finally made it official that crores of beneficiaries of Employees' Provident Fund (EPF) would get an increase in the interest rate for their provident fund money. Union Labour Minister Santosh Gangwar announced the decision on Tuesday which said EPFO would now provide a 8.65 per cent interest rate on employees provident fund (EPF) for 2018-19.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts at a higher rate of 8.65 per cent for 2018-19.
EPFO's latest decision means over 6 crore EPF account holders will be credited with an additional sum of Rs 54,000 crore. The finance ministry has already given the approval for the same on September 19.
"It gives me immense pleasure that for fiscal 2018-19, Labour Ministry has notified 8.65 per cent rate of interest on employees' provident fund (EPF). This rate of interest is 10 basis points higher than 8.55 per cent provided in 2017-18," Gangwar said in a statement.
"This rate of interest (8.65 per cent) was approved by the EPFO's apex decision making body Central Board of Trustees on February 22, 2019. We received concurrence of the Finance Ministry on September 19, 2019. Thereafter, Labour Ministry issued a notification for providing 8.65 per cent rate of interest for 2018-19," the minister said.
The minister also informed that this decision would pave the way for crediting Rs 54,000 crore as 8.65 per cent interest for 2018-19, into the accounts of more than 6 crore EPFO subscribers.
PTI had reported on September 19, 2019, that the government had approved 8.65 per cent rate of interest on EPF for 2018-19 fiscal year.
