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New Delhi: The government can give a big shock to the employers. Employees' Provident Fund Organization (EPFO) can reduce interest rates on PF. Due to limited resources, the interest rate on EPF can be reduced this year. EPFO announced 8.65% interest for the last financial year 2016-17. But for the current financial year 2017-18, it can be reduced to 8.30%.
According to information received by the EPFO sources, the report has been prepared on the reduction of interest rate on the labor ministry. Interest rates will mainly be reduced due to two. The first reason is that the ETF (Exchange-Traded Fund) unit will be deposited directly in the EPF account. Another major reason is that the revenue on EPFO's investment is continuously declining. In such a situation, it is difficult for the Employee Provident Fund to maintain the current interest rate.
The fund body has not estimated the total income of the current financial year. Based on the same income, EPFO determines interest rates. But sources said that this time interest rate has already been decided. If the income in the current financial year also decreases, it will be difficult to keep the interest rate stable. This can lead to interest rates falling to 8.3%.
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