Retirement fund body has asked its field offices to credit 8.55 percent rate of interest for 2017-18 into the PF accounts of around 5 crore subscribers. This is the lowest rate since 2012-13.
The Labour Ministry has conveyed approval of the central government to credit 8.55 per cent rate of interest for 2017-18 into PF accounts of members, according to an order issued by the EPFO to its more than 120 field offices.
The finance ministry had ratified 8.55 per cent rate of interest on EPF for the last fiscal. But it could not be implemented because of model code of conduct for Karnataka elections.
The ratification to this effect has been made long ago but was not implemented earlier due to the model code of conduct in respect of Karnataka elections. In an earlier instance, the labour ministry sought approval of the Election commission to notify the rate for crediting the interest rate for the gone by fiscal year. The rate for the EPF account had been fixed at the meet of EPFO’ CBT on February 21, 2018. This is the lowest rate of interest on the retirement fund in the last 5 years time. In 2015-16, members got the highest interest rate of 8.8% p.a. While in the FY 2016-17, the rate stood at 8.65%. In the year 2014-15 and 2013-14, the members of the EPFO fund recived 8.75% return on their EPF contribution.