Government Notifies 8.65% Interest Rate For EPFO Members In 2018-19
A person holds an Indian one hundred rupee banknote in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Government Notifies 8.65% Interest Rate For EPFO Members In 2018-19

Bookmark

The government has approved 8.65 percent interest rate on employees provident fund for 2018-19, which will now be credited into the accounts of over 6 crore subscribers of retirement fund body Employees’ Provident Fund Organisation , a source said.

The EPFO has been settling EPF withdrawal claims at 8.55 percent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65 percent for 2018-19.

“Ministry of Labour and Employment has notified 8.65 percent rate of interest on EPF deposits for its subscribers (over 6 crore). Now, the interest would be credited into accounts of subscribers and claims would be settled at this rate,” the source privy to development said.

The Central Board of Trustees—the apex decision-making body of the EPFO had approved 8.65 percent interest rate for the last fiscal on Feb. 21 this year. The proposal was sent for the concurrence of the finance ministry, and the labour ministry was waiting for its approval.

Earlier this week, Labour Minister Santosh Gangawar had assured, “Ahead of the festival season, over six crore EPFO subscribers would get 8.65 percent interest for 2018-19.”

On the delay in notifying EPF interest rate, the minister had said, “Finance Minister (Nirmala Sitharaman) is busy these days. She has the file (proposal for EPF interest rate for 2018-19). She does not disagree on this. The 8.65 percent rate of interest approved by us would be provided to EPFO subscribers for 2018-19. It should be done in few days.”

Also read: Government Proposes To Corporatise EPFO, ESIC

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.