NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / EPFO to announce provident-fund interest today: Here's all about it
    Business

    EPFO to announce provident-fund interest today: Here's all about it

    EPFO to announce provident-fund interest today: Here's all about it
    Written by Ramya Patelkhana
    Feb 21, 2018, 05:21 pm 3 min read
    EPFO to announce provident-fund interest today: Here's all about it

    The Employees' Provident Fund Organization (EPFO) is going to announce the provident fund interest rate for its five crore subscribers for 2017-18 after a meeting of its highest decision-maker, Central Board of Trustees (CBT). Previous reports suggested EPFO might lower the interest rate from 8.65% to 8.5%. But latest reports claim the retirement-fund body will retain the same 8.65% rate. Here's all about it.

    EPFO likely to announce 8.65% interest rate for FY18

    The EPFO is likely to pay an interest rate of 8.65% in 2017-18, according to PTI. It has reportedly sold a part of its equity investments worth Rs. 1,054cr to prevent any earnings shortfall for paying 8.65% interest rate. Even for 2016-17, EPFO paid 8.65% interest rate to its subscribers; this was, however, lower compared to the 8.8% in 2015-16 and 8.75% in 2013-15.

    Only a 20% chance of EPF rate cut: Experts

    EPFO retaining 8.65% interest rate would be good news for its subscribers. However, Finance Ministry has been pressurizing it to lower the rate as other, small savings schemes like Public Provident Fund, still pay much less. But EPFO isn't funded by the government; its rate depends on its earnings from investments. So, experts say EPFO is unlikely to succumb to the Ministry's pressure.

    CBT decides EPF interest rate

    The EPFO's CBT traditionally decides the interest rate on the provident fund before the year ends. A higher interest rate will benefit the EPFO's more than five crore subscribers. The retirement fund body currently manages a retirement corpus of over Rs. 11 lakh crore.

    Crediting ETFs directly into members' EPF accounts

    CBT may also discuss the disbursement of its exchange-traded fund (ETF) units to subscribers and review a proposal to credit the ETFs to the subscribers' EPF accounts as most members aren't financial literate. It might implement a differential equity allocation plan, giving subscribers a choice on the amount they want to invest. Currently, 15% of their annual EPF savings are invested through ETFs.

    EPFO invested Rs. 44,000cr in ETFs

    EPFO started investing in exchange-traded funds since Aug'15; it has invested more than Rs. 44,000cr in the ETFs till date and has reportedly earned a return of 16%. However, the organization has not monetized its ETF investments yet.

    EPFO to take up budget proposal on women employees' EPF

    The EPFO may also discuss the Budget 2018 proposal for allowing first-time female employees to contribute only 8% to EPF instead of the existing, mandatory 12% deduction. The central body's approval is required for making any changes in the EPF contribution. While the budget proposed an 8% EPF contribution of the basic monthly salary for new women employees, the employers' contribution will remain 12%.

    One-time opportunity for EPF subscribers to migrate to NPS

    The retirement fund body is also expected to present a proposal for amending the Employees Provident Fund & Miscellaneous Provisions Act to give the EPF subscribers one-time portability to the National Pension System (NPS). The NPS-EPF interoperability plan is pending since 2015.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    EPFO
    National Pension Scheme (NPS)
    Ministry of Finance
    Employees Provident Fund Organization (EPFO)

    Latest

    Nat Sciver-Brunt registers best batting average of WPL 2023: Stats Women's Premier League (WPL)
    Citroen to MG Motor: Top EVs under Rs. 25 lakh Electric Vehicles in India
    WPL 2023: Presenting the list of award winners Women's Premier League (WPL)
    IPL 2023: Here is the statistical preview of Punjab Kings Punjab Kings (PBKS)

    EPFO

    Coronavirus impact: EPFO to pay 8.5% interest in two installments Employees Provident Fund Organization (EPFO)
    #TechBytes: How to withdraw PF using an app Aadhaar Card
    With reduced EPF contribution, your take-home salary will now increase Nirmala Sitharaman
    Five ways to check your Employees' Provident Fund balance India

    National Pension Scheme (NPS)

    Drawing family pension from different sources possible: Government clarifies Civil Services
    Railway ticketing, Aadhaar, GST, more: Major policy changes in 2019 India
    Important changes in 2019 every Indian should be aware of India
    #FinancialBytes: All you need to know about National Pension System India

    Ministry of Finance

    Over 95,400 UPI-related frauds reported in 2022-23: Centre Unified Payment Interface (UPI)
    Government imposes anti-money laundering provisions on cryptocurrency, virtual assets Cryptocurrency
    February GST collections up 12%, third-highest of all time GST
    Parliament Budget Session begins; President Murmu calls government fearless, decisive Parliament

    Employees Provident Fund Organization (EPFO)

    EPFO extends deadline for higher pension: How to apply Supreme Court Of India
    Amid pandemic, Rs. 21cr fraudulently withdrawn from Mumbai PF office Mumbai
    EPF-Aadhaar card linking now mandatory. How to do it? Aadhaar Card
    EPFO members allowed second advance withdrawal citing COVID-19 Coronavirus

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023