A big setback for government employees lowering

A big setback for government employees, lowering the interest rate on PF to 8.55 percent

A big setback for government employees, lowering the interest rate on PF to 8.55 percent

The government gave a big shock to people in the service sector. The Employee Benefit Organization (EPFO) has reduced the interest rate on the Employee Provident Fund (OP) to 8.55% for 2017-18. Previously, the rate was 8.65% during the year.

Labor Minister Santosh Gangwar said at a press conference after the meeting of the directors of the Employee Provident Fund Organization: "It is difficult to assess the future by looking at the current economic scenario. We gave interest at 8.65% last year, after which there was a surplus of Rs 695 crore.This year, we recommended an interest rate of 8.55% for 2017-2018, with a surplus of from Rs 586 crore.

More than six crore employees are associated with EPFO across the country. The main decision-making body of the EPFO is the Central Board of Trustees (CBT), headed by a Minister of Labor. After the decision of the BCT on the rate of interest on the Employees Provident Fund, the Ministry of Finance confirms it. Interest received in the accounts of the provident fund holders is given after approval by the Ministry of Finance.

Gangwar expressed the hope that the workers' association would accept the interest payment decision at the rate of 8.55%. The Labor Minister said EPFO was to sell part of its investment in the publicly traded ETF (ETF) to offset the 8.55 percent interest in the current fiscal year. He stated that this rate is higher than the rate of 7.6% granted to the holders of the General Provident Fund (GPF) and the Public Provident Fund.

The minister said the trust also decided to reduce the existing employee limit of 20 to 10 for the coverage of the EPFO plans. He expressed the hope that this decision will increase the number of EPFO shareholders to nine crores.

Previous Post Next Post