AMN /New Delhi
The Employees’ Provident Fund Organisation, EPFO on Wednesday lowered the rate of interest on employees provident fund to 8.55 per cent for over 6-crore subscribers for 2017-18, from 8.65 per cent in the previous fiscal.
“It is difficult to evaluate about future in view of present economic scenario. We paid 8.65 per cent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 per cent for 2017-18, which will leave a surplus of Rs 586 crore,” Labour Minister Santosh Gangwar told reporter after the Employees’ Provident Fund Organisation’s (EPFO) trustees meet.
The Employees’ Provident Fund Organisation, EPFO has declared 8.55 per cent interest rate for 2017-18 for its about 5 crore members. This was decided during the meeting of Central Board of Trustees of EPFO in New Delhi today.
For 2016-17 the rate was 8.65 per cent and in 2015-16 the rate was 8.8 per cent. In order to maintain the interest this fiscal, the organisation had sold a portion of its investment in the exchange traded funds, ETF.
The Central Board also recommended reduction in administrative charges to 0.50 per cent from 0.65 per cent of Pay to ensure that the benefits of efficiency and savings of EPFO are passed on to the employers.
It said, the reduced liability on establishment can provide incentive to the employers to extend social security coverage to more employees and workers.
The Board observed that the investments in ETF have yielded good returns and the total annualized return as on December 2017 is 20.65 per cent on investments made in ETF.
It also took note of the EPFO participation in the disinvestment program of the government by investing in the Bharat 22 ETF to the tune of 2024.75 crore rupees.
The EPFO today introduced UAN-Aadhaar linking facility for the convenience of members using EPFO Link in UMANG Mobile App.
This is in addition to the existing web facility already available at EPFO’s website www.epfindia.gov.in.