EPFO lowers interest rate to 8.65%
The Central Board of Trustees (CBT) of Employees’ Provident Fund Organisation (EPFO) recommended the rate of interest for the year 2016-17 to be 8.65%.
The Chairman, CBT, and Union Minister of State for Labour and Employment (Independent charge) announced that Organisational Restructuring has been approved by the Union Government for implementation. This decision was announced in its 215th meeting of the Central Board (EPF) under the chairmanship of Union Minister of State for Labour and
Employment (Independent Charge). Roughly 17 crore subscribers’ accounts will be updated with this interest rate upon acceptance by the Government. There will be an Enrolment and Establishment coverage campaign 2017, online enrollment facilities to workers will form a key feature of the campaign. A window will be provided from 01.01.2017 till 31.03.2017. This campaign will be suitably staffed and resourced so that employers who come forth to extend social security to their employees receive all possible assistance from EPFO.
The Trade unions have opposed this move by EPFO and are said to be a move against the workers. While the government is maintaining a stand that 8.65% is the best rate that can be fixed for the present economic scenario.