As per the practice, EPFO trustees' decision gets implemented after the concurrence of the Finance Ministry. Following the ratification by the Finance Ministry, the decision would now be notified by the Labour Ministry as also by the Income Tax Department.

The rate was same in the previous year, 2013-14, when it was raised from 8.5 per cent in the 2012-13 fiscal. This rate of interest on Provident Fund deposits would now need to be notified by the Labour Ministry as well as by the Income Tax Department. The decision would be implemented from the date of notification, a senior official said.
    
The CBT had decided to retain the interest rate on PF deposits at 8.75 per cent for the current fiscal at its meeting on August 26. As per the practice, decision of the trustees of Employees' Provident Fund Organisation on interest rate is implemented after the concurrence of the finance ministry.
    
According to the EPFO's income projection, payment of 8.8 percent rate of interest would have left a surplus of Rs 77.15 crore. But since the income projection of Rs 29,136.42 crore for the current fiscal was done without factoring in interest payment burden due to enhanced wage ceiling, EPFO had suggested to fix 8.7 per cent rate of return on PF deposits for 2014-15.
    
The body recently enhanced the wage ceiling for becoming member of the scheme at the time of joining a job to Rs 15,000 from Rs 6,500 per month. The new wage ceiling is effective from September 1.

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