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Finance Ministry ratifies 8.65% interest on EPF for 2018-19

The EPFO had earlier reduced the interest rate in 2016-17 to 8.65 per cent from 8.8 per cent in 2015-16

Press Trust of India  |  New Delhi 

EPFO
EPFO office

The has approved 8.65 per cent rate of interest on Employees' (EPF) for 2018-19 as decided by retirement fund body EPFO, benefitting more than 6 crore formal sector workers.

"The Department of Financial Services (DFS), a wing of Finance Ministry, has given its concurrence to Organisation's (EPFO) decision to provide 8.65 per cent rate of interest for 2018-19 to its subscribers," a source privy to the development told

"The DFS has approved the proposal subject to fulfilment of certain conditions related to efficient management of the retirement fund," the source said further.

Earlier in February, the EPFO's apex decision making body Central Board of Trustees headed by Labour Minister had decided to raise the interest rate on to 8.65 per cent for 2018-19, which was the first increase in the last three years.

The interest rate on was hiked to 8.65 per cent for the last fiscal from 8.55 per cent provided in 2017-18. The had earlier reduced the interest rate in 2016-17 to 8.65 per cent from 8.8 per cent in 2015-16.

After the concurrence, the and the would notify the rate of interest for 2018-19. Thereafter the would give directions to its over 120 field offices to credit the rate of interest into subscribers' account and settle their claims accordingly.

According to the estimates, there would be a surplus of Rs 151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on There would have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19.

The EPFO had provided a five-year low interest rate of 8.55 per cent to its subscribers for 2017-18.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, April 26 2019. 16:56 IST
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