The Employees' Provident Fund Organisation (EPFO) on Wednesday announced that rate of interest on Employees' provident fund (EPF) has been increased to 8.65% for the financial year 2018-19. The EPFO said in a tweet that it will credit around Rs 54,000 crore as interest in the accounts of over 6 crore members.
— EPFO (@socialepfo) October 9, 2019
It may be recalled that 8.65 per cent interest rate for the last fiscal was approved by the Central Board of Trustees (CBDT) on February 21, 2019. The CBDT is the top decision-making body of the EPFO. On September 24, the Centre had notified 8.65 per cent interest rate on employees' provident fund (EPF) for 2018-19.
Before the approval of new interest rate, the EPFO was settling PF withdrawal claims at 8.55% interest rate, which was approved for 2017-18. It is to be noted that rate of interest of 8.55% for 2017-18 was the lowest in the last five years. In 2016-17, the interest rate was kept at 8.65%, while in 2015-16 it was 8.8%. The EPFO had provided 8.75% interest for 2013-14 as well as 2014-15, while in 2012-13, the rate of interest was 8.5%.
In August, the CBT had approved the proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for the restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation. This was a long pending demand of the pensioners, expected to benefit approximately 6.3 lakhs pensioners.