Retirement fund body EPFO on
Monday decided to increase the rate of interest on Provident Fund
deposits to 8.75% for 2013-14, a move that will benefit about 5 crore
subscribers.
"We have decided to recommend to the government 8.75% rate of interest
for 2013-14 to its subscribers," labour minister Oscar Fernandes told
reporters after a meeting of the EPFO trustees.
The Central Board of Trustees, which is the apex decision-making body of
the Employees' Provident Fund Organization (EPFO), met on Monday and
approved the interest rate.
According to sources, the body had surplus funds, which enabled the
interest rate to be increased from 8.5% in the previous financial year
(2012-13).
The EPFO's recommendation will be vetted by the finance ministry. Once
the ministry approves the decision, the interest would be credited to
the accounts of subscribers.
According to sources, the decision to enhance the rate was taken in view of the forthcoming Lok Sabha polls.
The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year.
Payment of interest at the rate of 8.5% to subscribers would have
required Rs 20,740 crore and left a surplus of Rs 56.96 crore, according
to earlier projections.
Source:-The Times of India
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