The Employees' Provident Fund Organisation (EPFO) on Thursday (21 February) hiked the interest rates on Provident Fund (PF) deposit for 2018-19 by 10 basis points to 8.65 per cent, Livemint has reported.
As per Labour Minister, this decision would benefit about six crore subscribers of the scheme. The earlier interest rate for 2017-18 was 8.55 per cent.
The interest rate provided for PFs has varied over the years. It was marked at 8.75 per cent from 2013-15 and hiked to 8.85 per cent in 2015-16. The rate came down to 8.65 per cent in 2016-17.
Following the recommendation made by the EPFO which is overseen by the Central Board of Trustees (CBT) headed by the Labour Ministry, the proposal would be sent for approval of the Finance Ministry.
The EPFO invests 15 per cent of the PF deposits in equities and the rest are put into debt instruments like government securities, private sector bonds and bank fixed deposits.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.