PF rate, loyalty bonus, and more: Here’s what’s new for provident fund subscribers

Unchanged interest rate on provident fund, a loyalty bonus for being a long-term contributor, extended deadline to submit Aadhaar – the government made plenty of announcements for subscribers of the provident fund scheme.

Here’s a low down on all that’s new (or unchanged):

1) Provident Fund interest rate:

The interest rate on provident fund deposits has been maintained at 8.65%, as was decided by the Employees’ Provident Fund Organisation (EPFO) in December for the deposits of 2016-17. The announcement was made by Labour Minister Bandaru Dattatreya after reports emerged that the government was seeking a further 50 basis points cut in the interest rates after it was lowered to 8.65% in december, the lowest rate in the last seven years.

For 2015-16 and 2014-15, subscribers earned an interest of 8.8%. Dattatreya rubbished the reports about a further cut in the PF interest rates, saying “it’s not like that. The CBT (EPFO trustees) had decided to give 8.65% Our ministry keeps on discussing (this) with the Finance Ministry.

At an interest rate of 8.65%, the EPFO would have a surplus of Rs 158 crore, Dattatreya added.

2) Loyalty bonus

The EPFO has decided to provide benefits of up to Rs 50,000 at the time …read more