Govt notifies 8.65% interest rate for EPF subscribers for 2018-19
25 Sep 2019
The government on Wednesday notified 8.65 per cent EPF interest rate for 2018-19 that would benefit its over 60 million active subscribers.
This is a 10 basis point increase from the 8.55 per cent EPF interest rate announced by the retirement fund for 2017-18, but 15 basis points lower than the 8.8 per cent interest rate paid out in the previous years.
The notification comes seven months after Employees' Provident Fund Organisation (EPFO) board decided to pay 8.65 per cent interest rate to its subscribers for 2018-19 in February 2019.
The interest amount has not also been credited to their account till date for want of a go-ahead from the finance ministry. The delay would adversely impact the return on deposits.
Labour minister Santosh Gangwar said Tuesday that earlier this month he has assured to fulfil the CBT decision and his ministry has now notified the interest rate.
After an 8.65 per cent payout this fiscal, EPFO will be left with a surplus of only Rs151 crore — below the levels maintained earlier. In 2017-18, the surplus was Rs586 crore.