The statutory retirement fund body is likely to retain the interest rate at 8.55 percent for the employees' provident fund (EPF) for the financial year 2018-19, reported PTI citing a highly placed source. The proposal of deciding the interest rate for the current fiscal year is set to be discussed at the meeting of the trustees of Employees' Provident Fund Organisation (EPFO) on 21 February.
The source told PTI that the in light of the forthcoming Lok Sabha elections, the interest rate would likely remain the same as that for 2017-18 at 8.55 percent. The Central Board of Trustees, that is set to meet on 21 February, is headed by Labour Minister and is the apex decision making body of the EPFO that finalizes the interest rate on PF deposits made for a financial year.
The proposal will then be required to be approved by the Finance Ministry after which the interest rate is credited into the subscribers' accounts.
For the financial year 2017-18, the EPFO had provided the lowest interest rate in five years at 8.55 percent to its subscribers. Previously, that is for the FY 2016-17, the interest rate provided was at 8.65 percent and for the year 2015-16 it was at 8.8 percent. For the financial years 2013-14 and 2014-15, the interest rate stayed at 8.75 percent, while for 2012-13, it was 8.5 percent.