In poll season, EPFO hikes interest rate

In yet another pre-election bonanza, retirement fund manager Employees’ Provident Fund Organisation (EPFO) on Thursday recommended a hike in the interest rate on employees’ provident fund by 10 basis points to 8.65% for the 2018-19, bringing it to the level of 2016-17.

The move has to be approved by the finance ministry before being implemented. The ministry generally approves EPFO's recommendations.

Last year the EPFO had cut the rate to 8.55% on PF deposits, the lowest in five years.

EPFO has an active subscriber base of more than 6 crore and manages retirement savings of over Rs 11 lakh crore.

The interest rate on PF deposits has come down from a high of 8.8% in 2015-16. In 2014-15, the EPFO had offered an interest rate of 8.75%. It was 8.5% during 2012-13.