The rate of interest on Employees' Provident Fund (EPF) has been increased to 8.65% for the financial year 2018-19, the Employees' Provident Fund Organisation (EPFO) announced on Wednesday. The organisation, in a tweet, claimed that this provident fund scheme will benefit over 6 crore members as it will deposit around Rs 54,000 crore as interest in their accounts.

The decision was taken on February 21 this year by the Central Board of Trustees (CBDT), the primary decision-making body of the EPFO, which hiked the interest rate to 8.65% from the existing rate of 8.55% in the last fiscal year. It is, however, to be noted that the 8.55% rate in 2017-18 the lowest in the last five years. In 2016-17, the interest rate was kept at 8.65%, while in 2015-16 it was even higher at 8.8%. In 2013-14, the EPFO had kept the interest rate at 8.75% while in 2012-13, the rate of interest was 8.5%.

In August, the CBT had approved the proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for the restoration of commuted value of the pension to the Pensioners after 15 years of drawing commutation. This was a long pending demand of the pensioners, expected to benefit approximately 6.3 lakhs pensioners.

(With inputs from Zee Media Newsroom)