EPFO likely to announce PF rate for FY18 next month
"After discussing in the Central Board of Trustees meeting, my ministry will take a decision. I am going to call a meeting shortly. The meeting will happen next month," Labour Minister Bandaru Dattatreya told reporters when asked about the decision on EPF interest rate for this fiscal.
Retirement fund body EPFO is likely to announce the interest rate on PF deposits for this fiscal at its trustee meeting slated for next month.
The Employees Provident Fund Organisation (EPFO) had lowered the rate of return for its over 4.5 crore subscribers to 8.65 per cent for 2016-17, from 8.8 per cent in 2015-16.
"After discussing in the Central Board of Trustees meeting, my ministry will take a decision. I am going to call a meeting shortly. The meeting will happen next month," Labour Minister Bandaru Dattatreya told reporters when asked about the decision on EPF interest rate for this fiscal.
The minister further said, "Last time, I gave 8.65 per cent and this year, our rate of return has come 13.3 per cent on equity investments. The CBT will propose a rate of interest based on income projection for this fiscal. Then, as its chairman, we will take the decision."
There is a buzz that the interest rate on EPF can be further lowered by around 25 basis points, or 0.25 percentage point, for the current fiscal from 8.65 per cent for 2016-17 in view of a falling yield on securities or bonds where the body invests bulk of its funds.
Yesterday, however, the minister had said the EPFO was in the process of working out income projections for the current fiscal which would then become the basis for fixing the rate of return for 2017-18.
A member of the EPFO's advisory body Finance Investment and Audit Committee (FAIC) has also confirmed that the panel is likely to deliberate on the proposal next month.
As per practice, the FAIC firms up the proposal on interest rate and places it before the CBT for approval. Once approved by the CBT, concurrence is sought from the finance ministry before the figure is made public.
The ministry has been pitching for aligning EPF interest rate with that of small savings rates administered by it.
The interest on small saving schemes like PPF has been reduced by 10 basis points, or 0.10 percentage point, for the July-September quarter.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:38 PM IST