The
interest offered by the Employees’ Provident Fund Organisation (EPFO) is likely
to rise this year, say sources in EPFO. Currently, the interest rate stands at
8.25 per cent.
Earlier,
EPFO’s interest rate had seen a steep cut — from 9.5 per cent for 2010-11 to
8.25 per cent for 2011-12. The rate for the current financial year has not been
announced yet.
EPFO officials say the entire amount for the year is
credited only after April 1, after the deposits for March 31 are received,
taking into account the new interest rate. Therefore, while the delay would not
affect depositors, those who withdraw their funds early in the year would not
benefit in case the interest is raised.
Though
EPFO may decide on the matter in a month, as the move would only be implemented
after consultations with the finance ministry, it may take longer to come into
effect, sources said.
Trade
unions are confident the rate would be raised to more than 8.5 per cent.
However, EPFO sources say interest of 8.5 per cent is high enough. They add
this rate had prevailed for five years, till it was increased in 2009-10, owing
to surplus funds.
D
L Sachdeva, secretary of the All India Trade Union Congress and a member of
EPFO’s central board of trustees, said it was likely this year, the rate would
increase to more than 8.5 per cent.
Any
decision on the interest is taken by the EPFO’s central board of trustees
headed by the labour minister. This financial year, the board has met twice —
May and August. But on both occasions, the issue of interest rates was not
included in the agenda.
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