Labour minister Santosh Gangwar has said that over 6 crore EPFO members will be getting 8.65 percent interest on their deposits for 2018-19 as compared to the current 8.55 per cent.
He said that ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 percent interest for 2018-19. Currently, the EPFO is settling PF withdrawal claims at 8.55 percent interest rate, which was approved for 2017-18.
The announcement was received by differences over the rate between the labour and the finance ministry. The matter has been resolved after Gangwar recently met finance minister Nirmala Sitharaman and explained that the organisation is left with a sufficient surplus even after paying 8.65% interest rate.
The EPF interest rate has been determined by Central Board of Trustees (CBT) and is notified by the labour ministry after taking concurrence of the finance ministry.
The interest rates on EPF are higher than that of similar government schemes. The finance ministry had slashed interest rate on General Provident Fund (GPF) and other similar funds to 7.9 percent for the quarter ending 30th September, 2019, as compared to 8 percent offered to government employees in the previous quarter.