The labour ministry has sought Election Commission's approval to notify rate of interest for crediting the same into members' accounts.
New Delhi: The labour ministry is likely to notify this week the 5-year low 8.55 per cent interest on PF for 2017-18, paving the way for retirement fund body EPFO to credit returns into the accounts of around 5 crore subscribers.
The finance ministry has ratified 8.55 per cent rate of interest on EPF for last fiscal.
"The labour ministry has sought Election Commission's approval to notify rate of interest for crediting the same into members' accounts by the EPFO in view of model code of conduct for Karnataka elections," a source said.
"The nod is expected anytime this week to provide 8.55 per cent rate of interest to the EPFO subscribers," the source said.
The recommendation on the rate of interest by the Central Board of Trustees, the apex decision making body of Employees' Provident Fund Organisation(EPFO), is sent to the finance ministry for its concurrence. Once ratified, the labour ministry notifies the rate of interest and the EPFO credits the return for the particular year into its members account.
The CBT, headed by the labour minister, had decided to fix 8.55 per cent rate of interest for last fiscal in its meeting held on February 21, 2018. It could not be implemented for the want of finance ministry's concurrence and was further delayed due to the model code of conduct for Karnataka elections on May 12. EPFO had provided 8.65 per cent interest for 2016-17.
The members got 8.8 per cent in 2015-16 and 8.75 per cent each in 2013-14 and 2014-15. In 2012-13, EPFO had provided 8.5 per cent rate of interest on EPF. Thus, at 8.55 per cent for 2017-18, it is a five year low.