The Labor Ministry is willing to pay interest at the current rate of 8.65% on the deposit of the Provident Fund (PF) during the current financial year. In addition, it will benefit 6 crores subscribers. The Central Board of Trustees, the apex decision-making body associated with EPFO, can discuss the interest rate on the deposits of the Provident Fund in its meeting of March 5, 2020. A source said that the ministry will continue as of FY 2018-19. Provident Fund (PF) wants to pay 8.65% interest on the amount in the financial year also. Simultaneously, a source said, "In the meeting of the Central Board of Trustees (CBT) on March 5, the proposal regarding the interest rate on the PF amount for the current financial year can be considered and approved."
Speculation of interest rate reduction
However, there is speculation that the interest rate on EPF can be reduced to 8.50%. Due to this, worry lines started appearing on the forehead of the employed people as it is 0.15% less than the previous year.
The agenda of the meeting is not yet decided
According to the source, the agenda of the CBT meeting has not been finalized yet. It is also difficult to estimate the earnings of EPFO this year, based on which the interest rates will be decided. The Ministry of Finance has been pressurizing the Labor Ministry to pay interest on the Provident Fund on the lines of PPF and Post Office Saving Schemes, the government's other small savings scheme. Labor Ministry requires the consent of the Finance Ministry to pay interest on EPF in a financial year.
EPFO paid high interest in 2015-16
EPFO paid 8.65% in 2016-17 and 8.55% in 2017-18. The department paid 8.8% interest in 2015-16.