Press Esc to close

EPFO may approve 8.5% interest rate for 2013-14

New Delhi, Sept 8, 2013 (PTI) 11:11 IST
Retirement fund body EPFO is likely to announce an interest rate of 8.5 per cent on provident fund deposits for 2013-14 to its over five crore subscribers, the same as provided for last fiscal.

According to sources, the preliminary estimates indicate that the payment of 8.5 per cent rate of interest will leave no deficit for the Employees' Provident Fund Organisation (EPFO) and could rather leave some surplus for the body.

"In all likelihood, the interest rate on PF deposits for this fiscal will be fixed at 8.5 per cent," a source said.

The source further said if the interest rate is to be increased to 8.75 per cent for the current fiscal, it would result in some deficit, which might not be acceptable to the finance ministry.

The body is likely to call a meeting of its apex decision making body, the Central Board of Trustees (CBT) headed by the Labour Minister, on September 23 to approve the interest rate.

During the meeting, the trustee would reconstitute the EPFO's advisory body--Finance and Investment Committee (FIC), which recommends the rate of interest to the CBT.

After the reconstitution of CBT by EPFO in June, the other sub-committees of EPFO like FIC, were dissolved and were required to be reconstituted.

As per the practice, the EPFO would have to place the proposal before FIC after which it is considered by the CBT for taking a final call on the matter.

Once approved, the proposal is put before the Finance Ministry for its concurrence.
The source said the CBT will meet again after reconstituting FIC sometime before Diwali (which falls on November 3) to approve the rate of interest for this fiscal.

EPFO paid 8.5 per cent interest rate to its subscribers in 2012-13, which was higher than 8.25 provided in the 2011-12 fiscal.

Go to Top

Most trending stories
Photo Gallery
Girls taking selfie in front of Gateway of India replica, it is made by Institute of Baking...

Girls taking selfie in front of Gateway of India replica, it is made by Institute of Baking...

Commissioning of Scorpene Class Submarine INS Kalvari at the Naval Dockyard in Mumbai...

Commissioning of Scorpene Class Submarine INS Kalvari at the Naval Dockyard in Mumbai...

Prime Minister Narendra Modi shows his finger marked with indelible ink, as he leaves...

Prime Minister Narendra Modi shows his finger marked with indelible ink, as he leaves...

Congress president-elect Rahul Gandhi meets with the families of fishermen affected by Cyclone...

Congress president-elect Rahul Gandhi meets with the families of fishermen affected by Cyclone...

Uttar Pradesh Chief Minister Yogi Adityanath and Samajwadi Party leader Azam Khan on their way...

Uttar Pradesh Chief Minister Yogi Adityanath and Samajwadi Party leader Azam Khan on their way...

An Indian army paratrooper jumps from a plane carrying an Indian national flag...

An Indian army paratrooper jumps from a plane carrying an Indian national flag...

Women waiting in a queue to cast their votes during the second phase of Assembly elections...

Women waiting in a queue to cast their votes during the second phase of Assembly elections...

Indian Youth Congress workers shout slogans while being detained by the police during a protest...

Indian Youth Congress workers shout slogans while being detained by the police during a protest...

Ghulam Nabi Azad, Derek O'Brien, Anand Sharma, Mallikarjun Kharge, Farooq Abdullah and others...

Ghulam Nabi Azad, Derek O'Brien, Anand Sharma, Mallikarjun Kharge, Farooq Abdullah and others...

Pope Francis receives a credential letter from Sibi George, new Ambassador of India to Holy See...

Pope Francis receives a credential letter from Sibi George, new Ambassador of India to Holy See...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.