At a meeting on Thursday, EPFO’s Central Board of Trustees decides to hike the rate by 10 basis points. The decision will now go to Finance Ministry for final approval.
The Employees Provident Fund (EPF) deposits will now earn more, with the Employees’ Provident Fund Organisation (EPFO) deciding to hike interest rates to 8.65% for 2018-19.
At a meeting on Thursday, EPFO’s Central Board of Trustees decided to hike the rate by ten basis points. Their decision will now go to the Finance Ministry for final approval. The retirement fund body has six crore subscribers.
This hike returns the rate of interest to the same level as it was in 2016-17, after a dip to a five year low of 8.55% in 2017-18.
Once approved by the CBT, the proposal requires the concurrence of the Finance Ministry. The interest rate s credited into the subscribers account after the Finance Ministry’s approval.
The EPFO had provided a five-year low rate of interest of 8.55% to its subscribers for 2017-18. The body had kept the interest rate at 8.65% in 2016-17 and 8.8% 2015-16. It provided 8.75% interest for 2013-14 as well as 2014-15. The rate of interest was 8.5% in 2012-13.