New Delhi: Retirement fund body EPFO on Monday decided to pay 8.5 percent interest rate to its over five crore subscribers on their PF deposits for 2012-13, higher than 8.25 percent provided in the previous fiscal.
The decision was taken at the meeting of the Central Board of Trustees (CBT), the highest decision making body of the Employees' Provident Fund Organisation (EPFO).
"A decision has been taken to pay 8.5 percent interest on PF deposits ... but we have expressed our reservations as we wanted higher interest rate," said D L Sachdev, secretary All India Trade Union Congress (AITUC) after the CBT meeting.
|EMPLOYEE PROVIDENT FUND ORGANISATION|
|EPFO decides to pay 8.5 interest rate to over five lakh crore subscribers|
|8.5 percent interest rate on PF deposits would leave a surplus of Rs 4.13 crore|
|EPFO status can be checked on the official website www.epfindia.gov.in|
|EPFO paid 8.25 percent interest in 2011-12 and 9.5 percent interest rate in 2010-11|
Earlier, a note prepared by EPFO for consideration of the February 15 meeting of the Finance and Investment Committee (FIC) had said, "... 8.5 percent rate of interest for the year 2012-13 is feasible."
According to the EPFO's estimates, payment of 8.6 percent interest rate would result in a deficit of Rs 240.49 crore whereas 8.5 percent interest rate on PF deposits for current fiscal would leave a surplus of Rs 4.13 crore.
In FIC meeting held on February 15, union leaders refused to discuss the issue regarding payment of interest in the current fiscal because the agenda note for the issue was not provided well in advance to them, sources said adding the note was tabled during the meeting.
They had said the EPFO's estimates would now be directly tabled before CBT meeting held on Monday, for final approval.
The notification on interest rate is issued by the government after concurrence with the Finance Ministry.
Usually, EPFO announces interest rate at the beginning of the year, but 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.
EPFO had paid 8.25 percent interest to its subscribers for 2011-12, lower than the 9.5 percent disbursed in 2010-11.