On Thursday, the Employees’ Provident Fund Organisation hiked the interest rate on employees' provident fund by 10 basis point from 8.55% to 8.65% for the 2018-19 fiscal year. As per reports Union Labour Minister Santosh Gangwar announced that it would benefit around 6 crore subscribers of the retirement fund body.
All members of the Central Board of Trustees (CBT) of EPFO had favoured a higher interest for subscribers for the current fiscal. The decision will be taken after the proposal which has been approved by the trustees will be give a green signal by the finance minister. Headed by the Union labour minister, the CBT is the highest decision making body of the EPFO that finalises rate of interest on PF deposits. But its decisions could be implemented only after getting an approval of the finance ministry.
At 8.55 per cent for 2017-18, the interest rate on the provident fund, the EPFO had provided a five-year low rate of returns on the PF deposits. The EPFO has brought the interest rate at the level of 2016-17, when the same 8.65 per cent rate was announced. The interest rate on PF deposits for 2015-16 was 8.8 per cent while it was 8.75 per cent for 2013-14 and 2014-15. During 2012-13, the EPFO had offered the interest rate of 8.5 per cent.