EPF rate falls to 8.1%, lowest in 4 decades – Times of India

new Delhi: Employees Provident Fund Organization ,EPFO) Proposal to reduce interest rate on Saturday retirement savings 8.5% to 8.1% for its 6.4 million customers, the lowest since 1977-78.
The payment, which is to be confirmed by the finance ministry, is in line with the agency’s earnings and will leave it with a surplus of Rs 450 crore during the financial year. Under the rules, the EPFO ​​has to decide on the interest payment based on its earnings and cannot seek outside support.
This year’s earnings are estimated by EPFO ​​at Rs 76,768 crore, which translates to a return of 7.9%, as compared to an earnings of 8.5% on the corpus last year, the labor minister said. Bhupendra Yadav Said this after the EPFO ​​meeting in Guwahati.
“If Invested In” State Bank Of India, it will get you 5.45%. similar tools like PPF Or others will earn 6.8% to 7.1% interest. That’s why, based on the current international situation and equity market conditions, investing has to be balanced with Social Security. We cannot take high-risk means, (like) we are meant to provide social security,” he said.