EPFO alert! Employees' Provident Fund interest rate cut to 8.5 per cent
The Employees’ Provident Fund Organisation (EPFO) has announced a cut of 15 points in its interest rate on employees' provident fund deposits.
The Employees’ Provident Fund Organisation (EPFO) has announced a cut of 15 points in its interest rate on employees' provident fund deposits. The retirement body on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar. The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body - the Central Board of Trustees.
"The EPFO has decided to provide 8.5 per cent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting today," Gangwar said after the meeting. The rates will be applicable after finance ministry's approval. The finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.
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The EPFO had provided 8.65 per cent rate of interest to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.
The latest cut comes days after the ministry notified the decision of the Employees' Provident Fund Organisation (EPFO) to restore pension of those who opted for commutation of their pension on or before September 25, 2008. As many as 6.3 lakh pensioners would benefit from the decision.
(To Be Updated)
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