Pension hike coming soon? EPFO meeting on this date - These decisions may be announced
Employees Provident Fund Organisation (EPFO) may soon increase the minimum pension for its members. The pension amount may get doubled to Rs 2000 from Rs 1,000 soon.
Employees Provident Fund Organisation (EPFO) may soon increase the minimum pension for its members. The pension amount may get doubled to Rs 2000 from Rs 1,000 soon. Also, after the much-awaited requests of the PF account holders, the interest on PF may also get increased.
Labour ministry has already given a nod?
According to the sources of labour ministry, an EPFO meeting will take place in the second week of August. The main aim of this meeting will be to increase the minimum pension amount of the pensioners. In case the meeting gives a nod to the decision, the EPFO will keep it at the meeting with Central Board of Trustee (CBT). After the CBT's nod, EPFO may soon announce about hike in minimum pension for pensioners. However, EPFO has already given a nod and it all depends on the CBT's final decision.
More interest on PF?
At the same time if sources are to be believed, the EPFO is in favor of the recommendations of pensioners, which is to increase the interest rates given to the PF account holders. In the financial year 2018-19, EPFO had announced 8.65 per cent interest. The Finance Ministry had also approved the decision of the EPFO to increase the interest rate, while due to the IL&FS crisis, the Finance Ministry had asked EPFO to review the interest rates. However, EPFO wants PF account holders to get increased interest rates.
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No problems in increasing interest rates
The EPFO had recommended raising the interest rates on PF from 8.55 per cent to 8.65 per cent for the financial year 2018-2019. According to a senior official, even after paying more interest on the PF, the EPFO still has more than Rs 150 crore in cash. Losses due to weak interest rates have already been covered. Therefore, there is no problem in paying more interest to the account holders.