Good news for salaried employees: EPFO likely to hike rate ahead of polls
In
what could bring cheer to 60 million salaried employees, the Employees’
Provident Fund Organisation (EPFO) may raise interest rates from 8.55
per cent currently. Three officials with knowledge of the matter told Live Mint
that if not raised, it will at least be retained at the existing level, making
it one of the most rewarding savings scheme.
Although
the EPFO rate is declared in December every year, there was a slight delay in
2018 as the account audit was still being done. It is now expected to be announced
on February 1.
There
is little scope for reducing the rate and efforts would be made to increase the
return, Prabhakar Banasure, member of EPFO’s central board of trustees, told
the business daily.
The
interest rate would be in line with what the government recently announced
incentives such as a nearly 50 per cent hike in incentives for frontline health
workers, including those working at Integrated Child Development Scheme centres
(anganwadis). The government has also made the National
Pension System (NPS) withdrawals tax-free.
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