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EPFO hikes interest rate on provident fund to 8.65% from 8.55%, to benefit 6 crore subscribers

Labour Minister Santosh Gangwar said that the decision to provide higher interest for subscribers for the current fiscal was approved by all members of the Central Board of Trustees of EPFO.

EPFO hikes interest rate on provident fund to 8.65% from 8.55%, to benefit 6 crore subscribers

NEW DELHI: In a good news for salaried class, Employees' Provident Fund Organisation (EPFO) on Thursday announced to provide 8.65 per cent interest on PF deposits for 2018-19 against 8.55 per cent in the last year.

The retirement fund body has 6 crore subscribers, Labour Minister Santosh Gangwar said, adding that the decision to provide higher interest for subscribers for the current fiscal was approved by all members of the Central Board of Trustees (CBT) of EPFO.

Talking to PTI, after the meeting of CBT in New Delhi, the minister said that the proposal would now go to the Finance Ministry for approval.

Headed by Labour Minister, the CBT is the apex decision making body of the EPFO and the CBT is responsible for deciding rate of interest on PF deposits for a financial year.

After the CBT's approval, the proposal requires the concurrence of the Finance Ministry, PTI reported. The subscribers receive the increased interest rate into their account only after the approval of the Finance Ministry.

It is to be noted that rate of interest of 8.55 per cent for 2017-18 was the lowest in the last five years. In 2016-17, the interest rate was kept at 8.65 per cent, while in 2015-16 it was 8.8 per cent. The EPFO had provided provided 8.75 per cent interest for 2013-14 as well as 2014-15, while in 2012-13, the rate of interest was 8.5 per cent.

(with PTI inputs)