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8.65 per cent interest on EPF soon: Labour Minister
Economy

8.65 per cent interest on EPF soon: Labour Minister

Agency News

New Delhi, 30 Aug, 2019: The labour ministry will soon notify 8.65 per cent rate of interest on Employees’ Provident Fund (EPF) for 2018-19, Labour Minister Santosh Gangwar said on Friday. A notification by the labour ministry is required regarding the interest rate for crediting the interest amount into accounts of over 6 crore subscribers. Besides, it would enable retirement fund body Employees’ Provident Fund Organisation (EPFO) to settle on withdrawal claims on this rate.

Now, the EPFO is paying an interest rate of 8.55 per cent for 2018-19 under PF withdrawal claims. The 8.55 per cent interest rate on PF deposits was fixed for 2017-18. “The finance ministry does not disagree with 8.65 per cent interest on EPF for 2018-19. I believe that it will soon be notified,” Gangwar told reporters. In February, the EPFO’s apex decision-making body Central Board of Trustees, headed by the labour minister, had decided to raise the interest rate on EPF to 8.65 per cent for 2018-19, which was the first increase in the past three years.

In April, the Department of Financial Services (DFS), a wing of the finance ministry, had given its concurrence to the EPFO’s decision to provide 8.65 per cent rate of interest for 2018-19.