The government has approved 8.65 per cent interest rate on employees provident fund for 2018-19, which will now be credited into the accounts of over 6 crore subscribers of retirement fund body EPFO, a source said on Thursday.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on a higher rate of 8.65 per cent for 2018-19.
"Ministry of Labour and Employment has notified 8.65 per cent rate of interest on EPF deposits for its subscribers (over 6 crore). Now, the interest would be credited into accounts of subscribers and claims would be settled at this rate," the source privy to the development said.
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 21 this year.
The proposal was sent for the concurrence of the finance ministry, and the labour ministry was waiting for its approval.
Earlier this week, Labour Minister Santosh Gangawar had assured, "..ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19".
On the delay in notifying EPF interest rate, the minister had said, "Finance Minister (Nirmala Sitharaman) is busy these days. She has the file (proposal for EPF interest rate for 2018-19). She does not disagree on this. The 8.65 per cent rate of interest approved by us would be provided to EPFO subscribers for 2018-19. It should be done in few days".