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PF rate hiked to 8.65%

Fri 22 Feb 2019, 13:06:03
The Employees’ Provident Fund Organisation (EPFO) board on Thursday recommended an increase in interest rate to 8.65% in the current financial year, compared to last year’s 8.55%, a move that will marginally improve the returns for six crore subscribers.

The pre-election announcement was the first increase in four years and came amid expectations that rates will be left unchanged. At a meeting here, all members of the Central Board of Trustees (CBT) of the EPFO agreed to give higher interest to subscribers for the current year, labour minister Santosh Kumar Gangwar told reporters after the meeting.

Labour secretary Heeralal Samariya said even at this level, the EPFO will have a surplus of around Rs 151 crore. The move, which will have to be endorsed by the finance ministry, comes at a time when interest rates are falling. A higher interest rate may limit the ability of banks to lower deposit rates to remain competitive.

With returns on provident fund contribution being tax free, post-tax returns on the EPFO will add up to over 12% in the top income bracket.




2 Comments For This Post.
MOHAMMED GOUSE PASHA Says:
My mother ePf pension monthly is 1973 by increasing pention how much amount will get monthly from which date it will be applicable

Comment posted on February 24 2019
MOHAMMED GOUSE PASHA Says:
My mother ePf pension monthly is 1973 by increasing pention how much amount will get monthly from which date it will be applicable

Comment posted on February 24 2019
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