New Delhi: Over 50 million subscribers of the retirement fund body EPFO may get 8.5% return on their investment during 2012-13, higher than 8.25% provided in the previous fiscal.
The body’s proposal is likely to come up for discussion during a meeting of its apex decision making body Central Board of Trustees (CBT) scheduled on 15 February, a person familiar with the matter said.
“The EPFO has worked out 8.5% rate of return for the current fiscal. It will not leave any deficit. However, the proposal has not been finalised as yet,” the person said.
The Employees Provident Fund Organisation (EPFO) had paid 9.5% interest in 2010-11, before scaling it down to 8.25% in 2011-12 fiscal. EPFO will place the proposal regarding the interest rate before its advisory body Finance and Investment Committee (FIC) at its meeting on 14 February. Once approved by the FIC, it will go to labour minister-headed CBT for final approval.
The notification on interest rate is issued by the government after concurrence by the finance ministry.
Although EPFO announces interest rate at the beginning of the year, there has been a delay this time. Trade unions have been pressing for an early meeting of the CBT to decide on the interest rate for the current fiscal.