The Labour Ministry has notified 8.65 per cent interest rate on Employees Provident Fund (EPF) for 2018-19. The interest will be credited to the accounts of more than 6 crore subscribers of retirement fund body EPFO, Union minister Santosh Gangwar said on Tuesday.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts at a higher rate of 8.65 per cent for 2018-19.
"It gives me immense pleasure that for fiscal 2018-19, the Labour Ministry has notified 8.65 per cent rate of interest on employees' provident fund (EPF). This rate of interest is 10 basis points higher than 8.55 per cent provided in 2017-18," Gangwar said in a statement issues.
"This rate of interest (8.65 per cent) was approved by the EPFO's apex decision making body Central Board of Trustees on February 22, 2019. We received the concurrence of the Finance Ministry on September 19, 2019. Thereafter, the Labour Ministry issued a notification for providing 8.65 per cent rate of interest for 2018-19," the minister said.
The minister also informed that this decision would pave the way for crediting Rs 54,000 crore as 8.65 per cent interest for 2018-19, into the accounts of more than 6 crore EPFO subscribers.
The decision was delayed as the Labour Ministry was waiting for approval from the Finance Ministry.
On the delay in notifying EPF interest rate, the Gangawar had said, "Finance Minister (Nirmala Sitharaman) is busy these days. She has the file (proposal for EPF interest rate for 2018-19). She does not disagree on this. The 8.65 per cent rate of interest approved by us would be provided to EPFO subscribers for 2018-19. It should be done in a few days".
"Ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19," the minister had assured.