Retirement
fund body Employees' Provident Fund Organisation (EPFO) on recently decided to
increase the rate of interest on Provident Fund deposits to 8.75 % for 2013
-14, a move that will benefit nearly 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 said after a meeting
of the EPFO trustees.
The
Central Board of Trustees, which is the apex decision-making body of the
Employees' Provident Fund Organisation (EPFO), met on recenly and approved the
interest rate.
According
to sources, the PF body had surplus funds, which enabled the interest rate to
be increased from 8.5% cent 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.
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