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The government has decided to increase the interest rates on the Employee Provident Fund deposits from existing 8.55 per cent to 8.65 per cent. This is a 10 basis points increase to its six crore subscribers. It is for the first time since 2016 that interest rates have been increased.
The retirement fund body Employees' Provident Fund Organisation (EPFO) today announced an interest rate hike on PF deposits for 2018-19.
Retirement fund body EPFO has decided to provide 8.65 per cent interest on PF deposits for 2018-19 against 8.55 per cent in the last year to its 6 crore subscribers, Labour Minister Santosh Gangwar was quoted by the Press Trust of India.
All members of the Central Board of Trustees (CBT) of EPFO at a meeting agreed to give a higher interest for subscribers for the current fiscal. According to the standard procedure, the proposal would now go to the Finance Ministry for approval.
The Central Board of Trustees (CBT) headed by Labour Minister is the apex decision making the body of the EPFO which finalises rate of interest on PF deposits for a financial year.
Once approved by the finance ministry, the interest rate is credited into the subscribers' account.
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.
