The Govt may soon notify 8.65% PF interest rate for FY19

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The interest rate of 8.65% offered by the EPFO in 2018-19 is likely to be notified soon by the Centre as the differences between the labour and finance ministry have been sorted out- Hindustan Times

“Recently Labour Minister, Santosh Kumar Gangwar met with Finance Minister Nirmala Sitharaman and explained that the organisation is left with a sufficient surplus even after paying an 8.65% interest rate to its 46 million subscribers”

The interest rate offered for FY-19 was 8.65% but in June 2019, the finance ministry wrote to the labour ministry to review its decision of offering the 8.65% rate on two grounds — one pertained to EPFO’s decision to invest in financially troubled Infrastructure Leasing & Financial Services (IL&FS) group companies, and the other was about the appropriation of surplus of the previous years.- HT report.

The EPF rate is substantially higher than that of similar government schemes. The finance ministry last month slashed interest rate on General Provident Fund (GPF) and other similar funds to 7.9% for the quarter ending September 30, 2019, as compared to 8% offered to government employees in the previous quarter.

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