As earlier dispute around interest rate on EPF between the ministry of labour and ministry of finance has been resolved, the centre is set to announce an increased rate of 8.65% on EPF deposits for the financial year 2018-19 as early as next week. The hike will directly benefit as many as 4.6 crore EPF subscribers.
If sources are to be believed, tussle over EPF returns between the two ministries continued for long. But, in a recently held meeting, the Labour minister Santosh Gangwar and Fiannce Minister Sitharaman decided to offer higher return to EPF members of 8.65% per annum for the FY 2018-19. And after the announcement to this effect is made, interest rate will be credited to the account of EPF subscribers.
In January 2019, EPFO announced 8.65% on PF, the same was approved by the Finance Ministry. But later in view of the IL&FS crisis, the provident fund regulatory body was asked to review the interest rate on EPF. Due to this reason, the notification concerning the interest rate on EPF had been delaying so far.
For the previous FY i.e. 2017-18, interest rate on EPF stood at 8.55% per annum.