Cheer For EPF Members! Govt To Credit 8.65% Interest Into 6 Cr Provident Fund Accounts For FY19

The move comes as a massive cheer for all 60 million active EPF members as a higher rate of interest (8.65 per cent) will now be credited into the accounts of these subscribers.

Hike in interest rate would also enable EPFO to settle withdrawal claims on this rate. (File Photo/ Getty)

New Delhi: Bringing an end to an almost seven-month long wait, the Union government on Tuesday announced that as many as 6 crore Employees' Provident Fund (EPF) members will get 8.65 per cent interest for 2018-19 fiscal. The move comes as a massive cheer for all 60 million active EPF members as a higher rate of interest (8.65 per cent) will now be credited into the accounts of these subscribers. The announcement, made by labour minister Santosh Kumar Gangwar, will enable crediting the interest amount of Rs 54,000 crore into accounts of over 6 crore subscribers. Apart from this, the hike in interest rate would also enable EPFO to settle withdrawal claims on this rate. Earlier, EPFO apex decision-making body Central Board of Trustees had decided to raise the interest rate on EPF to 8.65 per cent for the year 2018-19. The EPFO is currently paying an interest rate of 8.55 per cent for 2018-19 under EPF withdrawal claims. The 8.55 per cent interest rate on EPF deposits was fixed for 2017-18. For 2018-19, EPFO had raised interest rate to 8.65 per cent, from 8.55 per cent provided in 2017-18. The EPFO had earlier reduced the interest rate for 2016-17 to 8.65 per cent as compared with 8.80 per cent for 2015-16. This 8.65 per cent rate of interest is 10 basis points higher than that for 2017-18. Even though the EPFO board has decided to pay 8.65 per cent interest rate to its subscribers for 2018-19 in February 2019, it has not credited this to their account till date as it did not get the required permission from the Ministry of Finance. Labour minister Santosh Gangwar said Tuesday that earlier this month he has assured to full fill the CBT decision and his ministry has now notified the interest rate. As per 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. It is also being said that there would have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest on EPF for the previous financial year and that is why the retirement savings body decided to provide 8.65 per cent rate of interest for 2018-19.