In Big Step For Aam Aadmi, Employee Provident Fund Rate Hiked To 8.65%

In Big Step For Aam Aadmi, Employee Provident Fund Rate Hiked To 8.65%

In Big Step For Aam Aadmi, Employee Provident Fund Rate Hiked To 8.65% 

New Delhi: Labour Minister Santosh Gangwar said that retirement fund body EPFO or Employees' Provident Fund Organisation has increased the interest rate on employees' provident fund (EPF) to 8.65 per cent for the current financial year (2018-19), as quoted by news agency Press Trust of India.  The EPF interest rate's increase is expected to benefit six crore subscribers of the provident fund scheme. 

Mr Gangwar said that the EPFO's members of the Central Board of Trustees (CBT) agreed to give a higher interest for subscribers for the current fiscal year, as quoted by the agency. The proposal would go to the Ministry of Finance for approval, he said after meeting of Central Board of Trustees.

Headed by the labour minister, the Central Board of Trustees (CBT) is the apex decision-making body of the EPFO, which finalises the interest rate applicable to provident fund (PF) deposits.

The proposal will be sent to the finance ministry, once the Central Board of Trustees approval is in place. Following the clearance of the Ministry of Finance, the interest as per the approved rate is credited into the subscribers' accounts.

The retirement fund body, for financial year 2017-18, had kept the interest rate steady at 8.55 per cent - the lowest interest rate recorded in five years. It had provided interest at the rate of 8.8 per cent to the subscribers for financial year 2015-16.

For financial years 2013-14 and 2014-15, the interest rate stood at 8.75 per cent, and 8.5 per cent for 2012-13.

(With agency inputs)