EPFO to soon credit interest to subscriber accounts at 8.65% for 2018-19
17 September 2019
Employees' Provident Fund Organisation (EPFO) is likely to soon credit interest into accounts of its 60 million subscribers for 2018-19. Labour minister Santosh Gangwar today said that over 60 million EPFO members will get 8.65 per cent interest for 2018-19, according to an earlier report.
Currently, the EPFO is paying an interest rate of 8.55 per cent for 2018-19 under EPF withdrawal claims. EPFO will soon credit interest into 60 million EPF accounts.
Last month, the labour minister said the ministry will soon notify 8.65 per cent rate of interest on Employees' Provident Fund (EPF) for 2018-19 as the finance ministry has agreed to the rate.
Earlier this year, the EPFO's apex decision-making body Central Board of Trustees, headed by the labour minister, decided to raise the interest rate on EPF to 8.65 per cent for the year 2018-19, the first increase in the past three years.
A notification by the labour ministry is required for EPFO to credit the interest amount into accounts of over 60 million subscribers. It would enable the retirement fund body to settle withdrawal claims.
According to the EPFO's estimates, there would be a surplus of Rs151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would have been a deficit of Rs158 crore on providing 8.7 per cent rate of interest on EPF for the previous financial year. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19.