<p>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.<br /><br /></p>.<p>"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.<br /><br />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.<br /><br />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).<br /><br />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.<br />According to sources, the decision to enhance the rate was taken in view of the forthcoming Lok Sabha polls.<br /><br />The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year.<br /><br />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.</p>
<p>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.<br /><br /></p>.<p>"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.<br /><br />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.<br /><br />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).<br /><br />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.<br />According to sources, the decision to enhance the rate was taken in view of the forthcoming Lok Sabha polls.<br /><br />The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year.<br /><br />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.</p>