PF interest rate has increased 10 basis point for the fiscal year 2018-19

On thursday, Labour Minister Santosh Gangwar said that the retirement fund body EPFO has decided to hike 0.10 percent PF interest rate for employees from 8.55 percent to 8.65 percent for the fiscal year 2018-19 to its 6 crore subscribers.

The Central Board of Trustees (CBT) headed by Labour Minister is the apex decision making body of the EPFO which finalises rate of interest on PF deposits for a financial year.

After the CBT meeting Gangwar said, All members of the Central Board of Trustees (CBT) of EPFO at a meeting agreed to give a higher interest for subscribers for the current fiscal year and this proposal would now go to the Finance Ministry for approval.

Once approved by the CBT, the proposal requires the approval of Finance Ministry. After the Finance Ministry's approval, this decision could be implemented and then the interest rate is credited into the subscribers account.

For 2017-18, the EPFO had provided a five-year low interest rate of 8.55 percent to its subscribers. EPFO had kept the interest rate at 8.65 percent in 2016-17 and 8.8 percent in 2015-16.