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Business News/ Politics / Policy/  Govt approves 8.75% interest on EPF deposit for 2013-14
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Govt approves 8.75% interest on EPF deposit for 2013-14

EPFO estimated an income of Rs25,048.55 crore for 2013-14

As per its estimates, the payment of interest rate at 8.75% would require Rs25,005.41 crore and there would be a surplus of Rs43.14 crore. Photo: Rituparna Banerjee/MintPremium
As per its estimates, the payment of interest rate at 8.75% would require Rs25,005.41 crore and there would be a surplus of Rs43.14 crore. Photo: Rituparna Banerjee/Mint

New Delhi: Government has approved payment of 8.75% rate of interest on PF deposits in 2013-14 for over five crore subscribers of retirement fund body EPFO.

“The finance ministry has given its concurrence to the Employees’ Provident Fund Organisation’s (EPFO) trustees’ decision to provide 8.75% rate of interest to its members for the current fiscal," an official said.

EPFO’s apex decision making body, the Central Board of Trustees (CBT) headed by labour minister had decided to raise interest rate for the current fiscal to 8.75% from 8.5% paid in 2012-13, in its meeting held on 13 January. The CBT decision was sent to the finance ministry for vetting.

Since the fiance ministry has given its concurrence to the decision, the interest would be credited into the accounts of subscribers, he said.

EPFO estimated an income of Rs25,048.55 crore for 2013-14. As per its estimates, the payment of interest rate at 8.75% would require Rs25,005.41 crore and there would be a surplus of Rs43.14 crore.

According to the official, the finance ministry has asked the labour ministry to expedite the updation of EPFO’s subscribers’ accounts till 31 March 2014.

Now the labour ministry would communicate the approval of the finance ministry to the EPFO for crediting the said rate of interest in the PF accounts of its members for the current fiscal and settle claims accordingly.

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Published: 05 Mar 2014, 06:36 PM IST
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