Labour ministry keen to retain 8.65% interest rate on EPF deposits for FY20


PTI, Mar 1, 2020, 1:18 PM IST

New Delhi: The labour ministry is keen to retain an interest rate of 8.65 per cent paid on provident fund deposits to around six crore subscribers of retirement fund body EPFO for the current financial year, a source said.

The apex decision making body of Employees’ Provident Fund Organisation (EPFO) – Central Board of Trustees – is likely to consider the rate of interest on EPF (Employees’ Provident Fund) deposits in its meeting scheduled on March 5, 2020.

“The proposal to provide interest rate on EPF deposits for 2019-20 may come up for consideration and approval in the Central Board of Trustees (CBT) meeting on March 5,” a source said.

The source further said that the ministry is keen to retain the interest rate at 8.65 per cent, as was provided in the financial year 2018-19.

Speculations are rife that the interest rate on EPF may be lowered to 8.5 per cent for the current fiscal, a tad lower than 8.65 per cent provided for 2018-19.

According to the source, the agenda for the CBT meeting has not yet been finalised and it is difficult to predict EPFO’s income projections for the current fiscal, which will be the basis for fixing the interest rate.

The finance ministry has been nudging the labour ministry for aligning the EPF interest rate with other small saving schemes run by the government like the public provident fund and post office saving schemes.

The labour ministry requires the finance ministry’s concurrence to provide a rate of interest on EPF deposits in a fiscal year. Since the Government of India is the guarantor, the finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.

The EPFO had provided 8.65 per cent rate of interest to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.

It had provided 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Derogatory word against minister: AICC leader Surjewala calls for strict action against BJP MLC

Case registered against unknown persons who attempted to attack BJP MLC Ravi

Delhi polls: BJP issues ‘chargesheet’ against Kejriwal; vows to remove AAP from power

PVR INOX rejigs media biz, appoints Chief Sales Officer Shalu Sabharwal as head

Mastermind of kidnapping gang targeting celebrities arrested after encounter in UP’s Bijnor

Neelamangala accident: Tried avoiding hitting car in front, lost control, claims truck driver

Gurdaspur grenade attack: 3 Khalistani terrorists gunned down in encounter in UP

Related Articles More

Epigamia founder Rohan Mirchandani dies of cardiac arrest at age 42

Lohia Auto launches EV brand ‘Youdha’, aims to sell 3 lakh vehicles by 2027

“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm

Front-running case: Sebi bans 9 entities from market , impounds illegal gains of over Rs 21 crore

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

Unnao rape survivor father’s death: Delhi HC extends Kuldeep Sengar’s interim bail till January 20

Police to train Delhi school teachers to deal with bomb threats

Derogatory word against minister: AICC leader Surjewala calls for strict action against BJP MLC

Maha Kumbh 2025: 50,000 police personnel to ensure safety of pilgrims

Epigamia founder Rohan Mirchandani dies of cardiac arrest at age 42

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.