The Central Board of Trustees (CBT) at the EPFO (Employees' Provident Fund Organisation) has recommended an interest rate of 8.65 percent on the Employees' Provident Fund for the current financial year 2018-19. This is 10 basis points higher than the previous year's 8.55 percent.
If approved by the Ministry of Finance, the interest rate will be applicable to the contributions of six crore EPFO subscribers. It would be the first time since FY 2015-16 that the interest rate would be increased.
In 2017-18, the rate was reduced to a five-year low of 8.55 percent, while in 2016-17 and 2015-16 it was at 8.65 percent and 8.8 percent respectively.
The decision to raise the minimum pension under the Employee Pension Scheme (EPS) was discussed but the decision on the matter was deferred for the next meeting.
It was informed that the EPFO will have a surplus of Rs 151 crore as on date despite the higher interest rates. THE final decision and approval will be informed by the Labour Ministry once the Ministry of Finance gives its go ahead.
The CBT is the apex decision making body under the Labour Ministry that finalises the interest rates on PF for a financial year.