For the financial year of 2018, the Employee Provident Fund (EPF) Interest Rates have been reduced at a rate of 8.55 per cent which is being considered as the lowest rate since the 2012-2013 fiscal year. The suggestion of implementing the interest rate for the year 2018 to be credited at 8.55 per cent of the interest has been initiated by the Retirement Fund Body who had further asked the field offices to do so. This all-time low percentage is likely to fall into the PF accounts of as many as 5 crore subscribers.
The central Government’s approval over the same has been conveyed by the Labour Ministry to credit using the 8.55 percentage of the interest rate for all the members holding the PF accounts. This has been stated as per an order which has been issued by the EPFO for more than 120 field offices.
EPF Interest Rate Decision Delayed Due To Karnataka Polls
The Central Board of Trustees of the Employee Provident Fund which is headed by the Labour Minister had initially decided to fix the interest rate of 8.55 per cent for the last fiscal year for which the meeting was held in the month of February 2018. The Labour Ministry had further sent the same interest rate for CBT’s recommendation for the Finance Ministry. But owing to the Karnataka Polls on May 12, the proposed interest rate could not be implemented and was thus delayed.
The rate of interest on Employee Provident Fund was ratified by the Finance Ministry for the fiscal year of 2016-2017 to 8.55 per cent but the same could not be implemented because of the model code of conduct of the elections in Karnataka. The Election Commission’s approval was also sought by the Labour Ministry to credit the amounts in the PF account of the respective holders.
EPF Interest Rate 2018 | 5 Year Low
Initially, the EPFO had provided an interest rate of 8.65 per cent for the fiscal year of 2016-2017. In 2015-2016, the prevailing percentage was of 8.8 and in the two preceding previous years that are of 2014-2015 as well as 2013-2014, that rate was of 8.75. In 2012-2013, the EPFO had granted the interest rate on Employee Provident Fund for 8.5 per cent. This makes the current rate of interest of 8.55 per cent to be the lowest in the previous preceding 5 years.
Comments
