Indian five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Government Notifies 8.55% Rate On Provident Funds; Lowest In Five Years

Retirement fund body has asked its field offices to credit 8.55 percent rate of interest for 2017-18 into the PF accounts of around 5 crore subscribers. This is the lowest rate since 2012-13.

The Labour Ministry has conveyed approval of the central government to credit 8.55 percent rate interest for 2017-18, according to an order issued by the Employees' Provident Fund Organisation to its more than 120 field offices.

The finance ministry had ratified 8.55 percent rate on EPF for the previous fiscal. But it could not be implemented because of model code of conduct for Karnataka elections.

Also read: EPFO To Consider Crediting ETF Units To Provident Fund Accounts

The labour ministry had sought Election Commission's approval to notify rate of interest for crediting the same into members' accounts by the EPFO in view of model code of conduct for Karnataka elections. The EPFO's Central Board of Trustees, headed by the labour minister, had decided to fix rate at 8.55 percent in its meeting held on February 21, 2018.

The EPFO had provided 8.65 percent interest in 2016-17. The members got 8.8 percent in 2015-16 and 8.75 percent each in 2014-15 and 2013-14.