Friday, April 26, 2019

EPFO - Finance Ministry has approved 8.65% rate of interest on Employees Provident Fund (EPF) for 2018-19

EPFO - Finance Ministry has approved 8.65% rate of interest on Employees Provident Fund (EPF) for 2018-19

The Finance Ministry has approved 8.65% 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.

“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% 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.

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% for 2018-19, which was the first increase in the last three years.

The interest rate on EPF was hiked to 8.65% for the last fiscal from 8.55% provided in 2017-18. The EPFO had earlier reduced the interest rate in 2016-17 to 8.65% from 8.8% in 2015-16.

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.
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% to its subscribers for 2017-18.

PTI

0 comments:

Post a Comment

Now Trending

34% DA Order for Central Govt Employees wef 01.01.2022 - Latest CG Employees DA Order Jan 2022

 DA Order for Central Government Employees from Jan 2022 - Finmin Order 2022 Latest CG Employees DA Order Jan 2022 Dearness Allowance payabl...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com