Reduction in the interest rate on EPF and PF – Q&A in Rajya Sabha

No change in the interest rate on General Provident Fund (GPF) for the financial year 2014-15 and 2015-16

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA

QUESTION NO 425

ANSWERED ON 27.04.2016

Reduction in the interest rate on EPF and PF

425 Shri Ram Kumar Kashyap

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state :-

(a)whether Government has reduced the interest rates on EPF and PF, etc.;
(b)if so, the details thereof;
(c)what are the facts considered by Government while deciding the interest rates on EPF and PF and whether any definite formula has been prescribed for it; and
(d)if so, the details thereof and if not, the reasons therefor?

ANSWER
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) & (b): Ministry of Finance has ratified the Employees’ Provident Fund (EPF) interest rates at 8.70 per cent for the financial year 2015-16 against 8.75 per cent for the financial year 2014-15. There is no change in the interest rate on General Provident Fund (GPF) for the financial year 2014-15 and 2015-16, i.e., 8.70 per cent.

(c) & (d): The interest rates on EPF is decided on the basis of recommendations of Central Board of Trustees, Employees’ Provident Fund (EPF), prevailing investment environment and financial sustainability. The interest rate on GPF is fixed at par with Public Provident Fund (PPF) interest rates.