EPFO likely to retain interest rate at 8.55% for this fiscal

Retirement fund body EPFO is likely to retain the interest rate on employees' provident fund at 8.55 per cent for the 2018-19 fiscal year for its more than 60 million subscribers, a highly-placed source said.

"The proposal for providing interest rate for the current fiscal would come up in the meeting of the trustees of Employees' Provident Fund Organisation on February 21," the source said.

"The interest rate would be retained at 8.55 per cent for the current fiscal, as provided in 2017-18 in view of forthcoming Lok Sabha elections. The EPFO's income projections for the current fiscal would be tabled in the meeting." However, the source did not dismiss completely speculations that interest rate on EPF deposits for this fiscal can be more than 8.55 per cent in view of the Lok Sabha elections.

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

Once approved by the CBT, the proposal requires the concurrence of the Finance Ministry. The interest rate is credited into the subscribers’ account after the Finance Ministry's approval.