EPF Interest Rate Of 8.65% For 2018-19 To Be Notified Soon: Santosh Gangwar
The labour ministry will soon notify 8.65 percent interest rate on Employees' Provident Fund for 2018-19 as the finance ministry does not disagree on this rate, Union Labour Minister Santosh Gangwar said on Friday.
A notification by the labour ministry is required regarding the EPF interest rate for crediting the interest amount into accounts of over six crore subscribers. It would enable the Employees' Provident Fund Organisation to settle on withdrawal claims
on this rate.
The EPFO, at present, is paying an interest rate of 8.55 percent for 2018-19 under PF withdrawal claims. The 8.55 percent interest rate on PF deposits was fixed for 2017-18.
"The finance ministry does not disagree with 8.65 percent interest on EPF for 2018-19. I believe that it will soon be notified," Gangwar told reporters on the sidelines of a FICCI FICCI event in New Delhi.
In February, the EPFO's apex decision-making body Central Board of Trustees, headed by the labour minister, had decided to raise the EPF interest rate to 8.65 percent for 2018-19—the first increase in the past three financial years.
In April, the Department of Financial Services of the union finance ministry, gave its concurrence to EPFO's decision to provide 8.65 percent interest rate for 2018-19.
The EPF interest rate was raised to 8.65 percent for 2018-19 from 8.55 percent for 2017-18. The retirement fund body had reduced the EPF interest rate for 2016-17 to 8.65 percent as compared with 8.80 percent for 2015-16.
After the finance ministry's concurrence, the income tax department and the labour ministry are required to notify the rate of interest for 2018-19. Thereafter, the EPFO would give directions to its over 136 field offices to credit the rate of interest into subscribers' account and settle their claims accordingly.
According to the EPFO estimates, there would be a surplus of Rs 151.67 crore after providing the 8.65 percent EPF interest rate for 2018-19. There would have been a deficit of Rs 158 crore if a 8.70 percent interest rate was announced.