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India to pay 8.5% interest rate on EPF for FY09

India to pay 8.5% interest rate on EPF for FY09
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First Published: Mon, Feb 23 2009. 02 49 PM IST
Updated: Mon, Feb 23 2009. 02 49 PM IST
New Delhi: India will maintain an 8.5% interest rate on its largest pension fund, subscribed to by over 43 million employees, in 2008/09.
The Central Board of Trustees of the Employees Provident Fund (EPF) took the decision on Sunday at a meeting chaired by Labour Minister Oscar Fernandes.
The Employees’ Provident Fund Organisation’s (EPFO) flagship EPF scheme offered 8.5% interest to its subscribers at the end of the 2007/08 fiscal year.
Fernandes had earlier ruled out the possibility of an increase in interest rates this fiscal.
“We are investing in Central, state and public sector companies. Our rate is steady, we will try to maintain our rate,” minister had told an industry conference in December last year.
However employee representatives demanded a higher rate of interest.
“Employees’ representatives were in favour of higher rate of interest and during the deliberations they recorded their dissent,” a government statement said.
The board also discussed the possibility of bringing contract employees under the EPF Act, and the improvement of services and social security cover provided to those already covered by the scheme.
A decision on these issues has been postponed till the next meeting, the statement added.
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First Published: Mon, Feb 23 2009. 02 49 PM IST