EPFO interest rate: Subscribers eyeing hike over and above 8.55 percent in FY19 and here is what is likely to happen
EPFO interest rate: Retirement fund body Employees' Provident Fund Organisation (EPFO) is under the spotlight as subscribers are expecting a hike. With their money locked-in, subscribers would want that they get maximum benefits from it. As it is, EPFO gives one of the highest interest rates on money invested in the country. And what is going to happen? Will EPFO bite the bullet and raise rates or will that not happen? "The proposal for providing interest rate for the current fiscal would come up in the meeting of the trustees of Employees' Provident Fund Organisation on February 21," the source said. So, what will happen on that day? Will there be joy?
EPFO Interest Rates
Well, while nothing is clear till now, according to indications, it is expected that EPFO will likely retain the current interest rate on employees' provident fund at 8.55 per cent rate for the 2018-19 fiscal for its more than six crore subscribers. This was revealed by a highly-placed source said. However, there can even be good news for EPFO subscribers on interest rates. Image source: PTI
EPFO Good News?
The source did not dismiss completely speculation that EPFO interest rate on subscribers deposits for this fiscal can be more than 8.55 per cent.
Who Decides EPFO interest rates?
The Central Board of Trustees headed by Labour Minister is the apex decision making body of the EPFO which finalises rate of interest on PF deposits for a financial year.
Whose OK is required by EPFO
Once approved by the CBT, the proposal is required concurrence of the Finance Ministry. The interest rate is credited into the subscribers account after the Finance Ministry's approval.
EPFO interest rates timeline
The EPFO had provided a five-year low rate of interest of 8.55 per cent to its subscribers for 2017-18. The body had kept the interest rate at 8.65 per cent in 2016-17 and 8.8 per cent in 2015-16. It provided 8.75 per cent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 per cent in 2012-13.