PF Rates Unlikely To Be Changed; To Continue To Fetch 8.65%

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The ruling party is unlikely to tinker with EPF rates and so a EPF subscriber is most likely to continue reaping 8.65% per annum as per one of the leading business daily report.

PF Rates Unlikely To Be Changed; To Continue To Fetch 8.65%

For it the employee provident fund organization is mulling over the proposal to sell off some of the shares it purchased in the year 2015 to shore up the return to 8.65%.

With the sell off the shares, organization aims to fetch a total of Rs. 850 crores by selling shares valued at Rs. 2000 crore. The additional income would be used towards as the total earning and used for the determination of PF rate.

The report by the provident fund body says, "The Central Board of Trustees of EPFO would be meeting next month to finalise the PF rate and the modalities of the share sale. We will be asking the fund managers to cut down their commission to pass on the maximum benefit to the PF subscribers. However, the final (income) number would depend on the share prices on the day of the sale and there could be a little tweaking (in the interest rate). We are aiming to keep the rate unchanged from last year".

Since last few years, the return on EPF is declining from 8.75% in the year 2013-14 and 2014-15 to 8.8% in 2015-16 to 8.65% in 2016-17.

Read more about: pf, epf, epfo, epf rate, nda
Story first published: Monday, January 22, 2018, 13:21 [IST]
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