EPFO hikes interest rate on PF deposits to 8.65% for 2018-19:
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
EPFO hasannounced an interest rate of 8.65 per cent on PF deposits for 2018-19, a 10 basis point hike for its 6 crore subscribers.
The decision was taken during EPFO trustees meeting. In 2017-18, the interest rate was 8.55% and there was speculation that it is unlikely to be raised. However, defying predictions, EPFO has raised it by 0.1%.
The Central Board of Trustees (CBT) headed by Labour Minister is the apex decision making body of the EPFO which finalises rate of interest on PF deposits for a financial year.
Once approved by the CBT, the proposal is required concurrence of the Finance Ministry. The interest rate is credited into the subscribers account after the Finance Ministry’s approval.The move, once approved by the finance ministry will benefit six crore EPFO subscribers
The EPFO had provided a five-year low rate of interest of 8.55 per cent to its subscribers for 2017-18. The body had kept the interest rate at 8.65 per cent in 2016-17 and 8.8 per cent in 2015-16. It provided 8.75 per cent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 per cent in 2012-13. The EPFO had started investing in the ETFs (exchange traded funds) in August 2016. Presently it invests 15 per cent of its Rs 1.5 crore investible Edeposits at hand every year in ETFs. It has invested around Rs 50,000 crore in ETFs so far.