Tuesday, 1 October 2019

The news you were waitng for PF is finally here

The wait is over for the salaried individuals contributing towards their Employee Provident Fund (EPF). Their provident fund (PF) is soon going to be credited with interest. The interest rate of 8.65 per cent on the Provident Fund (PF) for
2018-19 has been given the government’s go-ahead. 

On September 27, the Employees’ Provident Fund Organisation (EPFO) has circulated a direction to all regional provident fund commissioners, officers-in-charge and regional offices to issue necessary instructions for crediting the interest rate for 2018-19 to the Provident Fund account of the members. In the statement, the EPFO states that the Ministry of Labour and Employment has conveyed the approval of the Central Government to credit interest rate of 8.65 per cent for 2018-19 to the EPF accounts.

The interest rate on EPF was hiked to 8.65% from 8.55% declared in 2017-18. According to the EPFO estimates, even after declaring 8.65 per cent rate of interest on PF for 2018-19, the organisation will have a surplus of Rs 151.67 crore. Earlier than that, the interest rate on EPF was reduced for 2016-17 to 8.65 per cent as compared with 8.8 per cent for 2015-16.

The apex decision-making body of the EPFO, the Central Board of Trustees had earlier approved 8.65 per cent interest rate. Labour Minister Santosh Gangwar had recently been reported to have said that ahead of the festival season, over 6 crore EPFO accounts will be credited with interest amount at 8.65 per cent rate for 2018-19.

Every year, the government declares an interest rate to be credited to the EPF balance. For most of the employees, a fixed percentage of 12 per cent of one’s basic pay is diverted towards EPF on monthly basis. An equal share comes from the employer side. But, from 12 per cent of employer contribution, 8.33 per cent moves into the employee’s pension scheme (EPS) subject to a cap of Rs 15,000. the balance out of the employer share is put into the EPF.

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