EPFO hikes interest rate on PF deposits to 8.65 in FY 18-19

February 21: The Employees Provident Fund Organisation (EPFO) has hiked rate on employees’ provident fund (PF) deposits to 8.65 from 8.55 for the 2018-19 financial year. This is the first time since FY16 that the interest rate has been raised. The EPFO Board also discussed the issue of raising the minimum pension under the employee pension scheme (EPS). However, a decision on the matter has been deferred until the next board meeting.

The move is in line with a slew of populist announcements made by the Narendra Modi government ahead of the Lok Sabha elections. The Central Board of Trustees (CBT) headed by the Labour Minister is the apex decision-making body of the EPFO that finalises the rate of interest on PF deposits for the financial year. The proposal requires the concurrence of the Finance Ministry after approval by the CBT.