Government Approves 8.65% Interest Rate On Provident Fund For 2018-19: 10 Things To Know

In an EPF account, the employee contributes 12 per cent of the salary whereas an equal amount is contributed by the employer, according to EPF.

Government Approves 8.65% Interest Rate On Provident Fund For 2018-19: 10 Things To Know

Currently, the EPFO has been settling PF withdrawal claims at 8.55% interest rate, approved for 2017-18.

The government has approved 8.65 per cent interest rate on employees' provident fund (EPF) for 2018-19, reported news agency Press Trust of India (PTI) quoting a source. The interest amount will now be credited into the accounts of over 6 crore subscribers of retirement fund body Employees' Provident Fund Organization (EPFO), the report added. In an EPF account, the employee contributes 12 per cent of the salary whereas an equal amount is contributed by the employer, according to the EPF website - epfindia.gov.in.

Here are 10 things to know about recent announcements related to the EPFO account:

  1. Currently, the EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65 per cent for 2018-19. 

  2. "Ministry of Labour and Employment has notified 8.65 per cent rate of interest on EPF deposits for its subscribers (over 6 crore). Now, the interest would be credited into accounts of subscribers and claims would be settled at this rate," a source was quoted as saying by PTI.

  3. The Central Board of Trustees -- the apex decision-making body of the EPFO -- had approved 8.65 per cent interest rate for the last fiscal on February 21 this year.

  4. The proposal was sent for the concurrence of the finance ministry, and the labour ministry was waiting for its approval. 

  5. Earlier this week, Labour Minister Santosh Gangawar had assured, "..ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19.

  6. Last month, retirement fund body EPFO approved a proposal to restore a provision for commutation, or advance part-withdrawal, withdrawn by the EPFO in 2009 under the Employees' Pension Scheme. 

  7. Under the EPF Scheme, a final PF claim is settled within 20 days.

  8. However, in the case of resignation, the member has to wait for a period of two months for withdrawal of the PF amount.

  9. Provident fund body EPFO also allows the subscriber to make a partial withdrawal from the corpus under certain conditions.

  10. A partial withdrawal claim is forwarded to the employer for approval. Once approved, the amount is credited to the subscriber's account within 10 days, according to the EPFO website.



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