Ministry of Labor is eager to keep up 8.65 p.c rate of interest on EPF deposits

by Jeremy Spirogis
Ministry of Labor is keen to maintain 8.65 percent interest rate on EPF deposits

new Delhi: The Ministry of Labor is eager to keep up the rate of interest of 8.65 p.c on the Employees Provident Fund deposits for the present monetary yr 2019-20. A supply gave this info. The Employees Provident Fund Organization (EPFO) has about six crore shareholders. It is believed that the EPFO's apex decision-making physique will resolve the speed of curiosity on the Employees Provident Fund (EPF) deposits at a gathering of the Central Board of Trustees (CBT) on March 5, 2020. The supply mentioned, "The proposal of interest rate on EPF in 2019-20 will be considered in the CBT meeting of March 5 and will be approved."

The supply mentioned that the ministry is eager to maintain the rate of interest at 8.65 p.c for the monetary yr. There is concept that the speed of curiosity on EPF might be lowered to eight.5 p.c within the present monetary yr. 8.65 p.c curiosity was paid on EPF in 2018-19. The supply mentioned that the agenda of the CBT assembly has not been determined but. <! –

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                 It is tough to estimate the earnings of EPFO ​​for the present monetary yr. The rate of interest is determined on this foundation. The Finance Ministry is pressurizing the Ministry of Labor to make the rate of interest on EPF much like different small financial savings schemes run by the federal government like Provident Fund Deposit (PPF) and Post Office Savings Schemes.

For the rate of interest on EPF in a monetary yr, the Labor Ministry has to take the consent of the Finance Ministry. Since the Government of India is the guarantor, the Finance Ministry has to evaluation the proposal of rate of interest on EPF to keep away from any legal responsibility in case of shortfall in EPFO ​​earnings. EPFO paid 8.65 per cent curiosity to its shareholders in 2016-17 and eight.55 per cent in 2017-18. In the monetary yr 2015-16, a excessive curiosity of 8.Eight p.c was paid on it. Earlier, 8.75 p.c curiosity was paid on EPF in 2013-14 and 2014-15. The charge of curiosity on EPF was 8.5 p.c in 2012-13.

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