New Delhi: The Central government on Thursday approved 8.65 per cent interest rate on employees’ provident fund for 2018-19 and issued a notification in this regard. The amount will now be credited to the accounts of over 60 million subscribers of EPFO, a report from news agency PTI stated citing a source.
“Ministry of Labour and Employment has notified 8.65 per cent rate of interest on EPF deposits for its subscribers (over 60 million). Now, the interest would be credited into accounts of subscribers and claims would be settled at this rate,” said the PTI report.
The development comes two days after Labour Minister Santosh Gangwar announced that over 6 crore Employees’ Provident Fund Organisation (EPFO) members will get 8.65% interest in their deposits from 2018-19.
After the formal announcement, the proposal was sent for approval from the finance ministry. On the delay in notifying EPF interest rate, Labour Minister Santosh Gangwar said that Finance Minister (Nirmala Sitharaman) is busy these days.
“She has the file (proposal for EPF interest rate for 2018-19). She does not disagree on this. The 8.65 per cent rate of interest approved by us would be provided to EPFO subscribers for 2018-19. It should be done in few days,” Gangwar said.
Earlier this week, Labour Minister Santosh Gangwar had said that over 60 million EPFO subscribers would get 8.65 per cent interest for 2018-19 ahead of the festive season.
Earlier this year, the Central Board of Trustees (CBT), EPFO’s apex decision-making body, decided to raise the interest rate on EPF to 8.65% for the year 2018-19, the first rise in the last three years.
Currently, the EPFO is paying 8.55% for 2018-19 under EPF withdrawal claims. The 8.55% interest rate on EPF deposits was fixed for 2017-18.