Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Govt planning to keep PF rate unchanged at 8.65%: Reports
  • Business

    Govt planning to keep PF rate unchanged at 8.65%: Reports

    Gogona Saikia
    Written by
    Gogona Saikia
    Mail
    Last updated on Jan 22, 2018, 06:17 pm
    Govt planning to keep PF rate unchanged at 8.65%: Reports
  • According to reports, the NDA government is planning to keep the interest rates unchanged on PF deposits at last year's 8.65%.

    This will be a break from recent EPFO norms, which has been reducing rates from 8.75% in 2013-14 and 2014-15 to 8.65% in 2015-16.

    Now the government is planning to use EPFO's shares to retain the 8.65% rate.

  • In this article
    How does the provident fund system work? Amid reduced interest income, EPFO planning to sell shares New PF rate to be based on share prices 'Managers urged to cut commission for maximum benefit to subscribers' Government recently extended the scope of PF by 50L
  • About

    How does the provident fund system work?

    How does the provident fund system work?
  • Provident Fund (PF) is a retirement benefit applicable to salaried employees, maintained by EPFO (Employees Provident Fund Organization) under the Labor and Employment Ministry.

    Most employees contribute 12% a month to their PF account. The employer matches the amount.

    The total sum then compounds at a fixed rate as decided by the EPFO every year; currently it is 8.65% per annum.

  • Investments

    Amid reduced interest income, EPFO planning to sell shares

    Amid reduced interest income, EPFO planning to sell shares
  • EPFO invests in equities comprising stocks that reflect composition of indexes like Nifty or Sensex.

    Its portfolio includes ETFs by SBI MF, UTI MF and central public sector enterprises ETF by Reliance MF.

    Falling rates of special deposit schemes and AAA-plus bonds has reduced EPFO's income this fiscal.

    But it's reportedly planning to sell shares worth Rs. 2,000cr for additional earnings of Rs. 850cr.

  • Rate

    New PF rate to be based on share prices

    New PF rate to be based on share prices
    Credits:
  • The extra Rs. 850cr would be factored in as total earnings while determining the new PF rate.

    "The final (income) number would depend on share prices on the day of sale, and there could be a little tweaking (in interest rates)," IE quoted sources as saying.

    If rates were to be determined according to EPFO's annual interest income, the payout would have been 8.5%.

  • Quote

    'Managers urged to cut commission for maximum benefit to subscribers'

  • "The Central Board of EPFO Trustees would meet next month to finalize the PF rate and the modalities of the share sale. We will be asking fund managers to cut down their commission to pass on the maximum benefit to the PF subscribers," sources said.

  • Measures

    Government recently extended the scope of PF by 50L

    Government recently extended the scope of PF by 50L
  • Recently, the Center said it will increase the current mandatory PF coverage cap to Rs. 21,000 monthly.

    Currently, employees earning up to Rs. 15,000 are mandatorily covered; those earning above this threshold can voluntarily opt for PF.

    This would add 50L subscribers and take the total number to 4.25cr.

    The Labor Ministry has proposed extending PF-like schemes to the entire working population of 49cr.

  • EPFO
  • Employees Provident Fund
  • Indian Government
  • NDA
  • Employees Provident Fund Organization
  •  
Latest News
  • Mi 11 Lite appears in live images, features detailed
    Mi 11 Lite appears in live images, features detailed
    Science
  • Nissan Magnite garners 40,000 bookings in India; production ramped up
    Nissan Magnite garners 40,000 bookings in India; production ramped up
    Auto
  • Netizens decode message hidden in NASA's Perseverance rover's parachute
    Netizens decode message hidden in NASA's Perseverance rover's parachute
    Science
  • Apple rumored to replace iPad mini with foldable iPhone
    Apple rumored to replace iPad mini with foldable iPhone
    Science
  • Celebrities, Punjab CM mourn noted singer Sardool Sikander's death
    Celebrities, Punjab CM mourn noted singer Sardool Sikander's death
    Entertainment
Related Timelines
  • Coronavirus impact: EPFO to pay 8.5% interest in two installments
    Coronavirus impact: EPFO to pay 8.5% interest in two installments
    Business
  • #TechBytes: How to withdraw PF using an app
    #TechBytes: How to withdraw PF using an app
    Science
Trending Topics
Bharti Airtel Mukesh Ambani WhatsApp Spotify Reliance Jio OPPO Isha Ambani
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Samsung Virat Kohli Rohit Sharma
Cricket News Facebook YouTube Hollywood News WhatsApp Netflix Bollywood News ISRO Spotify Yoga
Honda Batman Football News BMW Vaccine Reliance Jio OPPO Food News, Healthy Recipes Royal Challengers Bangalore Toyota
Fashion Tips Ishant Sharma Farmers Protest Mercedes Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV Smart TV Robert Lewandowski
Marvel Comics Avengers Neha Kakkar Mena Massoud
About Us Privacy Policy Terms & Conditions Contact Us News News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021