EPF Interest rate News

EPF Interest Rate History: EPFO is likely to increase the auto-settlement of advance claims (ASAC) limit, raising it five times from Rs 1 lakh to Rs 5 lakh. EPFO has retained the provident fund interest rate (8.25%) for the FY 2024-25. The Employees' Provident Fund was established with the enactment of the Employees' Provident Funds Ordinance on November 15, 1951, which was later replaced by the Employees' Provident Funds Act, 1952. Let's have a quick look on the history of the employees' provident fund interest rates.  

Employees are allowed to opt out of the EPF (Provident Fund) scheme only if they meet certain criteria. However, such individuals will miss out on a slew of benefits offered by the EPFO. 

Gangwar said that the EPFO will have a surplus of over Rs 700 crore on providing 8.5 per cent rate of interest on EPF for this fiscal.

Retirement fund body EPFO is likely to announce the interest rate on PF deposits for this fiscal at its trustee meeting slated for next month.  

The Employees' Provident Fund Organisation trustees had approved 8.65 percent rate on EPF in December last year.

Over 4 crore EPFO subscribers may get a lower interest at a rate of 8.6 percent on their PF deposits for current financial year as Labour Ministry is expected to toe the Finance Ministry line to cut the rate.

Employee unions have called a nationwide protest on April 29, against the Finance Ministry's move to fix EPF interest rate at 8.7 percent for 2015-16, lower than 8.8 percent sought by Employee Provident Fund Organisation (EPFO) and 8.75 paid for the previous fiscal.

Labour Minister Bandaru Dattatreya on Wednesday assured the RSS-backed trade union BMS that his ministry is pressing upon the Finance Ministry with "all justifications" to uphold 8.8 percent interest rate decided by the EPFO.

This is probably the first time that the Finance Ministry has not given concurrence to the rate of interest on EPF as decided by CBT, which is headed by the labour minister.

The Finance Ministry on Monday approved 8.7 percent interest on Employees' Provident Fund (EPF) deposits for 2015-16, labour minister Bandaru Dattatreya said.