In what comes as great news for salaried class people, the interest rate for Employees’ Provident Fund has been hiked. Union Labour Minister Santosh Gangwar confirmed this development on Tuesday. Minister said over 6 crore EPFO members will get 8.65% interest on their deposits for 2018-19.
The Central Board of Trustees — the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO) — had approved 8.65% interest rate for the last fiscal in February this year. The proposal was sent for the concurrence of the finance ministry. “…ahead of the festival season, over 6 crore EPFO subscribers would get 8.65% interest for 2018-19,” Gangwar said.
At present, the EPFO is settling PF withdrawal claims at 8.55% interest rate, which was approved for 2017-18. So, it has increased interest rates by ten basis point.