Money Dec 20, 2012
New Delhi: Retirement fund body EPFO's apex decision making body Central Board of Trustees (CBT) is likely to decide rate of interest on PF deposits for 2012-13 in its meeting scheduled on January 15.
"Employees' Provident Fund Organisation's (EPFO) trustee may consider the proposal for deciding the rate of interest on PF deposits in its meeting on January 15," a source said. EPFO has also issued a notice that the 201st meeting of the Central Board of Trustees (EPF) has been scheduled to be held on January 15 (Tuesday), 2013 in Mumbai.
As per the practise after the CBT, headed by the Labour Minister, decides the rate of interest for a fiscal, it is sent to the Finance Ministry for concurrence.
According to the sources, the preliminary estimates of EPFO indicate that the body would neither have surplus nor have deficit if it pays 8.6 percent rate of interest to its over 50 million subscribers.
However, the unionists are demanding to keep the interest rate at par or above 8.8 percent provided to the subscribers of Public Provident Fund, which is voluntary scheme.
The unionist have also been demanding raising the interest rate to 9.5 percent provided by the body in 2010-11. EPFO had slashed the rate of interest by 1.25 percent to 8.25 percent for 2010-11.
Prior to 2010-11, EPFO had maintained an interest rate of 8.5 percent for five consecutive years since 2004-05. "We will demand interest rate of 9.5 percent for this fiscal in the trustees meet. It should commensurate the prevailing bank deposits rate ranging from 9 to 10 percent," Hind Mazdoor Sabha Secretary A D Nagpal who is also an EPFO trustee told PTI.
More From Firstbiz.