EPFO interest rate for 2017-18 at 5-yr-low of 8.55%; FinMin clears proposal

With rates of all small savings schemes, including the Public Provident Fund, going down in the past year, EPFO's return of 8.55 per cent is still the best rate

The finance ministry on Thursday approved for 2017-18 an interest rate of 8.55 per cent on provident fund savings administered by the Employees’ Provident Fund Organisation (EPFO) for around 200 million formal sector workers.

“The finance ministry has approved the interest rates according to the decision taken by EPFO's central board of trustees. However, they have also given us some suggestions informally,” a senior labour ministry official said.

The EPFO trustees, headed by Minister of State for Labour and Employment Santosh Gangwar, had announced at a meeting on February 21 a five-year-low interest rate of 8.55 per cent for 2017-18.