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EPFO moots hiking EPF interest rate to 8.65% for FY18-19

The move, once approved by the finance ministry, will benefit six crore EPFO subscribers.

, ET Bureau|
Last Updated: Feb 21, 2019, 07.56 PM IST
Govt hikes EPF interest rate to 8.65% for FY18-19
Govt hikes EPF interest rate to 8.65% for FY18-19
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New Delhi: The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) has recommended increasing the interest rate on Employees' Provident Fund for 2018-19 to 8.65% as against 8.55% in the preceding year. The move, once approved by the finance ministry will benefit six crore EPFO subscribers .

Epfo will have a surplus of Rs 151 crore as on date after doling out higher interest rates. Finance ministry will have to give it's go ahead to the interest rate declared by EPFO following which it will be notified by the labour ministry.

The CBT is a tripartite body with representatives from the government, employers and trade unions headed by the labour minister. It is the apex decision-making body of the EPFO. The 8.65% rate is higher than that available on government small savings schemes, the return on which is benchmarked to market rates.

EPFO has an active subscriber base of more than 60 million and manages retirement savings of over Rs 11 lakh crore.

The EPFO provided a five-year-low rate of interest of 8.55% for FY18. It pegged the rate at 8.65% in FY17 and 8.8% in FY16. It provided 8.75% interest in FY14 and FY15. The rate of interest was 8.5% in FY13.
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