New Delhi: In good news for the Employees’ Provident Fund Organisation’s (EPFO) over six crore subscribers, they will now get an interest rate of 8.65% in their deposits from 2018-19 after the Labour Ministry, on Tuesday, approved a notification in this regard.
The development comes after the Finance Ministry, on September 17, approved the new interest rate.
In a statement to news agency PTI, Union Labour Minister Santosh Gangwar said, “It gives me immense pleasure that for fiscal 2018-19, the Labour Ministry has notified 8.65% rate of interest on EPF. This rate of interest is 10% higher than 8.55% prescribed for 2017-18.”
Speaking at an event last month, he had said that his ministry was waiting for the Finance Ministry’s approval on the new rate of interest, which was determined, in February, by the Central Board of Taxes (CBT), which is the apex decision-making body of the EPFO.
Now that the Labour Ministry has approved the notification, the EPFO can direct its over 136 offices to credit the interest amount into the subscribers’ accounts.
According to EPFO website, epfindia.gov.in, in an EPF account, the employee contributes 12% of his salary, with the employer contributing an equal amount.
The EPFO is an organization tasked to assist the CBT and comes under the Ministry of Labour and Employment. It helps the CBT, which is a statutory body, in administering a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India.