The Employee Provident Fund Organization is planning to increase the PF interest rate from the current existing 8.75%. This topic came into discussion in the latest meeting, which was held for the top officials from the Labour and Finance ministries.
The estimated income for the current fiscal indicates that the EPFO shall be able to pay an increase in the PF interest. The interest rate shall be slightly higher than the 8.75%, which was provided in 2013-14 and 2014-15.
However, the finance ministry wants the EPFO to maintain the current rate of 8.75% for the current year as well. This is in view of a reduction in the rate of returns on small saving schemes and PPF.
However, the PF interest rate is fixed solely by the EPFO’s apex decision-making body which is headed by the Labour Minister. This is due to the fact that the body provides the rate of return from its own income.
The Minister also announced that the rate of interest would be likely announced in January 2016 when a CBT meeting shall be held.
Sourced from the EPF website.
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