EPFO interest rate raised to 8.65 per cent

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The Employees’ Provident Fund Organisation (EPFO) has raised the PF interest to 8.65 per cent for FY 2018-19. The retirement fund body currently has more than 6 crore users. 

Retirement
The PF interest rate, recommended by the CBT, will be applied to the subscribers once the Finance Ministry approves.

The decision-making body for the EPFO is the Central Board of Trustees (CBT) with the Labour Minister as the head of the trustee group. The CBT recommends an interest rate change and the Finance Ministry then gives its approval for the change in rate to be applied to the subscribers. 

The PF interest rate was previously 8.55 per cent, a 5-year low, in FY 2017-18. The EPFO had fixed the PF interest rate at 8.65 per cent for FY 2016-17, 8.8 per cent for FY 2015-16, 8.75 per cent for FY 2013-14 and FY 2014-15, and 8.5 per cent in FY 2012-13. 

Financial year 

PF interest rate (per cent) 

2018-19 

8.65 

2017-18 

8.55 

2016-17 

8.65 

2015-16 

8.8 

2013-14 

8.75 

2014-15 

8.75 

2012-13 

8.5 

 

The trustees of the esteemed pension fund organisation also looked into the investments made by the organisation in Exchange Traded Funds (ETF). The investments started in August 2016 and 15 per cent of the corpus that can be invested is being invested in ETFs regularly. So far, Rs.50,000 crore has been invested by EPFO in ETFs. 

Source: Times of India

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