Ministry of Labour has notified 8.65 per cent interest rate on employee provident fund for 2018-19. After the notification, Rs 54,000 crore would be credited into accounts of 6 crore account holders as interest under the newly approved rate for 2018-19.
Moreover, Employees' Provident Fund Organisation (EPFO) will now be able to settle withdrawal claims on this rate. So far, the pension body has been settling EPF withdrawal claims at 8.55 per cent interest rate approved for 2017-18.
The Central Board of Trustees - the apex decision-making body of the Employees' Provident Fund Organisation (EPFO) - had approved 8.65 per cent interest rate for the last fiscal on February 22 this year. The proposal was sent for the concurrence of the finance ministry, and the labour ministry was waiting for its approval.
"This rate of interest (8.65 per cent) was approved by the EPFO's apex decision making body Central Board of Trustees on February 22, 2019. We received concurrence of the Finance Ministry on September 19, 2019. Thereafter, Labour Ministry issued a notification for providing 8.65 per cent rate of interest for 2018-19," Labour Minister Santosh Gangwar said.