Labour Ministry notifies 8.65% interest rate on EPF for 2018-19

Union labour minister Santosh Gangwar on Tuesday (September 24) said that the ministry has notified a 8.65% interest rate on employees’ provident fund (EPF) for 2018-19, which will be credited to the accounts of over six crore EPFO subscribers.

The retirement fund body, EPFO, has been settling withdrawal claims at 8.55% interest rate, approved for 2017-18, but will now be settled at a higher rate of 8.65% for 2018-19, reported news agency PTI.

“It gives me immense pleasure that for fiscal 2018-19, Labour Ministry has notified 8.65% rate of interest on employees’ provident fund (EPF). This rate of interest is 10 basis points higher than 8.55 per cent provided in 2017-18,” Gangwar said in a statement.

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The statement said that the rate of interest (8.65%) was approved by the Central Board of Trustees, EPFO’s apex decision-making body, on February 22, 2019. “We received concurrence of the Finance Ministry on September 19, 2019. Thereafter, Labour Ministry issued a notification for providing 8.65% rate of interest for 2018-19,” Gangwar said.

Further, he informed that the accounts of over six crore subscribers of EPFO would be credited with ₹54,000 crore as 8.65% interest for 2018-19. It was earlier reported that the government had on September 19 approved the new rate interest for this fiscal year.

(With inputs from agencies)