EPF interest rate hike to 8.65 per cent approved; 60 mn EPFO subscribers to get benefit
Union finance ministry has ratified the hike of the Employees Provident Fund (EPF) interest rate to 8.65% as approved by retirement fund manager EPFO. Confirming the development to PTI, a labour ministry official on the condition of anonymity, said, "The Department of Financial Services has accepted the EPFO rate hike and given its concurrence for a higher interest payout." Although the FinMin approval is a procedural formality, it is needed before interest rates are passed on to 60 million EPFO subscribers.
According to the EPFO estimates, there would be a surplus of Rs 151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19. The EPFO had provided a five-year low-interest rate of 8.55 per cent to its subscribers for 2017-18. Image source: Reuters