A Gift from Modi to Janta, Before Election: Hikes EPFO Interest Rate by 8.65%

The EPFO (Employees' Provident Fund Organisation) has raised the rate of the interest rate by 8.65% from 8.55% on the deposits said by said Santosh Gangwar, Labour Minister on Thursday. The notable increment arrives just after the start of 2019 Lok Sabha elections. The move is expected to inspire confidence among the middle-class.

EPFO Raised Rate of Interest on Deposits For Financial Year 18-19:

The labour minister also added that the members of EPFO's Central Board of Trustees (CBT) agreed to the decision to provide a higher interest rate for subscribers in the current fiscal year. Still, there is no confirmation from the Finance Ministry as the proposal is not approved.

Earlier, the EPFO had offered a five-year low-interest rate of 8.55% on deposits to its subscribers for FY 2017-18. In FY 2016-17, the board had approached the interest rate at 8.65% and 8.8% in 2015-16. It was very high during the year 2013-14 and 2014-15 which was around 8.75% rate of interest and in 2012-13 the rate of interest was 8.5%.

As per PTI report, Labour Minister Santosh Kumar Gangwar recently told, "The hike in interest rate also comes in the backdrop of a sharp increase in EPF enrollments in the last two fiscals. More than 1 crore members have been added to the EPFO in the last two years".

Gangwar said it is the continuous effort of the government to get more benefits to the workers in the unorganised sector.

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