EPFO to credit 8.65% interest in over 6 crore accounts
Employees' Provident Fund Organisation (EPFO) to pay 8.65% interest on the deposits of more than 6 crore subscribers for the period of 2018-19. Labour Minister Santosh Gangwar announced that the money will be credited to the bank account of the EPFO subscribers.
In the past two years, it is the first increase in the interest rate of the Employees’ Provident Fund (EPF). At present, an interest rate of 8.55% is being paid by the EPFO. However, the interest rate of 8.55% was fixed for the period of 2017-18.
• Labour Minister Santosh Gangwar said that ministry is developing infrastructure in newly established union territories Ladhak and Jammu & Kashmir.
• He also informed that the Employees State Insurance Corporation (ESIC) would start a 100-bed hospital Srinagar and a 30-bed hospital in Leh.
• Santosh Gangwar said that two offices of EPFO in Srinagar and Jammu are also coming soon.
• He informed that the Labour Ministry is working for over 40 crore unorganized workers in the country to provide them suitable work environment.
Employees’ Provident Fund (EPF) is generally a contribution to employees’ salary and employer. Employees generally contribute 12% of their salary towards EPF. However, there is no limit that prohibits an employee to contribute more than 12% of his basic salary to the EPF. The EPFO was established with the circulation of the Employees' Provident Funds Ordinance on November 15, 1951, but it was replaced by the Employees' Provident Funds Act, 1952. This organization controls three major schemes - EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).