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Labour ministry rejects move to lower EPFO rate of interest

July 19, 2019 05:44 AM

COURTESY HT JULY 19

Rajeev Jayaswal rajeev.jayaswal@htlive.com ■
Labour ministry rejects move to lower EPFO rate of interest
NEW DELHI: The labour ministry has rejected the finance ministry’s request to reduce the 8.65% interest rate offered in 2018-19 by the Employee Provident Fund Organisation, the government owned pension fund manager, in a move that should bring cheer to 46 million subscribers whose funds are managed by EPFO.

Government officials familiar with the matter said the labour ministry is of the view that EPFO has sufficient surplus of over ~3,150 crore, mainly earned from investments in exchange traded funds (ETFS).

EPFO interest rate is determined by the organisation’s Central Board of Trustees (CBT), which does so after assessing the

annual returns on the investments. It is the duty of EPFO to pass on the rightful share of the subscribers, the government

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