Provident Fund: Good news of PF interest rate hike coming soon? What Modi govt may gift to EPFO subscribers before Feb ends
Provident Fund: As per reports, there are over 19 crore EPFO subscriber including retired members and those who have settled their claims.
PF interest rates: Crores of Employee Provident Fund subscribers may soon get good news! A Zee Business TV report claimed that the EPFO is all set to increase the interest rate in the coming days. The current interest rate is 8.55 per cent. The TV report claimed citing sources that the hike may come before February end.
As per reports, there are over 19 crore EPFO subscriber including retired members and those who have settled their claims.
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If the interest rates are hiked, it will benefit the employees working in organised sectors. Earlier this month, Mint had quoted some EPFO officials saying that the interest rates can be hiked. The paper had reported that the interest rate will not be lowered even in the worst condition.
The EPFO interest rates were highest between 1990 to 2001 when it was 12%. However, since, then the rate has undergone an upheaval. EPFO had kept the interest rate at 8.65% in 2016-17 and 8.8% in 2015-16.
If a decision is taken to hike the rates, it will benefit around 6 crore subscribers. The central board of trustees of the EPFO has the power to decide the interest rate. Their decision is vetted by the finance ministry, following which it is notified.
Provident fund amount is deducted from the salaries of employees working in organised sectors. Employees generally contribute 12% of their basic salary towards the Employee Provident Fund. The government has allowed partial withdrawal of the EPF accounts for meeting the expenses such as house construction, higher education, and marriage, given certain conditions.
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Last year, the government had said that there are over 8.38 crore EPFO accounts which do not have the date of birth. It had informed that another 11.07 crore accounts do not have father's name. Also, there are 7,83,06,246 accounts in which subscribers date of joining is not available.