NEW DELHI: Retirement fund body EPFO's trustees are likely to defer the decision on interest rate on PF deposits for 2014-15, as the proposed 8.7 percent may not be acceptable to union representatives.

The issue of payment of interest rate is listed on the agenda of the next meeting of the Employees' Provident Fund Organisation's apex decision making body the Central Board of Trustees (CBT) which is scheduled for August 26.

According to the agenda note for the meeting, the CBT should either decide to provide 8.7 percent rate of interest on PF deposits to its over 5 crore subscribers in 2014-15 or defer the issue till the last quarter of this financial year.

The EPFO has suggested that the announcement on interest rate may be deferred in view of the government's decision to enhance the monthly wage ceiling to Rs 15,000 from the exiting Rs 6,500. It has argued that by the fourth quarter of this fiscal, it would be possible to appropriately assess the impact of government's decision.

The enhanced wage ceiling is likely to bring about 50 lakh more workers under the EPFO's social security net. At present those getting basic wages of 6,500 at the time of joining are covered under EPFO schemes.