New EPF interest rate: Got Provident Fund account? Here's how your money will grow now
EPF interest rate 2018-19: The Union Ministry of Finance has approved 8.65 per cent rate of interest on Employees' Provident Fund (EPF) for 2018-19 as decided by retirement fund body EPFO, benefitting more than 6 crore formal sector workers. This means the money in your provident account will now earn 8.65% interest. The EPF interest is calculated on a monthly basis but provided at the end of the Financial Year.
EPF interest rate 2018-19: What officials say
EPF interest rate 2018-19: "The Department of Financial Services (DFS), a wing of Finance Ministry, has given its concurrence to Employees Provident Fund Organisation's (EPFO) decision to provide 8.65 per cent rate of interest for 2018-19 to its subscribers," a source privy to the development told PTI. "The DFS has approved the proposal subject to fulfilment of certain conditions related to efficient management of the retirement fund," the source said further.
EPF interest rate 2018-19: Decision in February
EPF interest rate 2018-19: Earlier in February, the EPFO's apex decision making body Central Board of Trustees headed by Labour Minister Santosh Gangwar had decided to raise the interest rate on EPF to 8.65 per cent for 2018-19, which was the first increase in the last three years. The interest rate on EPF was hiked to 8.65 per cent for the last fiscal from 8.55 per cent provided in 2017-18. The EPFO had earlier reduced the interest rate in 2016-17 to 8.65 per cent from 8.8 per cent in 2015-16. Image: Reuters
EPF interest rate 2018-19: 120 field offices to credit the rate of interest
EPF interest rate 2018-19: After the Finance Ministry concurrence, the Income Tax Department and the Labour Ministry would notify the rate of interest for 2018-19. Thereafter the EPFO would give directions to its over 120 field offices to credit the rate of interest into subscribers' account and settle their claims accordingly. Image: Agencies
EPF interest rate 2018-19: Rs 151.67 crore surplus!
EPF interest rate 2018-19: According to the EPFO estimates, there would be a surplus of Rs 151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19. The EPFO had provided a five-year low interest rate of 8.55 per cent to its subscribers for 2017-18. Image: Reuters