EPFO offers a hike for the first time in four years, interest rate to be 8.65%
NEW DELHI: The Employees’ Provident Fund Organisation (EPFO) board recommended an increase in interest rate to 8.65% in the current financial year, compared to last year’s 8.55%. The announcement was made on Thursday and it's a decision that can significantly increase returns for six score subscribers.
At a meeting , all members of Central Board of Trustees of the EPFO agreed to give higher interest to subscribers for the current year, labour minister Santosh Kumar Gangwar said.Labour secretary Heeralal Samariya EPFO will have an excess of around Rs 151 crore at this rate. The finance ministry has to endorse this move and may limit ability of banks to lower deposit rates to remain competitive.
So far, there has been no default in interest or principal payment. We are watching the situation on future interest payments,” central provident fund commissioner Sunil Barthwal told reporters.