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Employee Provident Fund interest rate up
Posted on: 22/Feb/2019 3:11:55 PM
The Central Provident Fund Endowment Board as informed that the interest rate for the employees’ Provident Fund has been increased from 8.55% to 8.65%.
The Provident Fund Scheme, which is a part of the various social security systems offered, was enacted as legal act after a lot of protests and demands. In this provident fund scheme, a certain percentage (%) from the employee` monthly earnings is deducted as provident fund.The employer companies contribute an equal amount. Further, the interest for this is also accounted and maintained.
This scheme helps the employees after their retirement as a social security system. Further, there is a provision tp take loans from the credited provident fund for emergency cash required occasions such as marriage, house purchase, education, etc.
In this situation. The 224th meeting of the future Provident Fund Endowment was conducted today (Friday, 22nd February). During this meeting, a decision was taken to increase the current provident fund interest rate from 8.55% to 8.65%. Around 6 crores employees will benefit from this.
After the meeting, the central minister for the Employee Welfare, Santhosh Gangvar, shared
‘All the members of the central provident Fund Endowment board member agreed to increase the interest rate of the employee provident fund. This proposal has been sent to the Finance Department for approval.
There are 6 Crore members in the employees Provident Fund scheme. Around Rs. 11 lakh Crores is kept as the total funds available. After the increase in the interest rate, this would have gone up by an additional Rs. 150 Crores.
The central minister for employee welfare will be the head for the future provident fund endowment board. This i\has the authority to finalise the interest rates for provident funds.
