EPFO to decide interest rate on PF deposits
By siliconindia | Monday, June 29, 2009
Bangalore: Employment Provident Fund Organization's (EPFO) advisory body Central Board of Trustees (CBT) is likely to decide the interest rate on PF deposits for the fiscal 2009-10 at its meeting on July 4. Finance ministry will take the final call once the CBT, which will be headed by the Union Labour Minister, Mallikarjun Kharge recommends the interest rate on provident fund deposits. "The CBT is likely to recommend 8.5 percent percent interest rate for 2009-10, the same that depositors received in the previous fiscal," said an EPFO official. At present, the organization has about 4.49 crore provident fund subscribers and is one of the largest PF institutions in the world, in terms of constituent members and transactions handled. Fund subscribers have been receiving 8.5 percent interest on their deposits since 2005-06. EFPO official says, "An increase of 0.25 percent will lead to a deficit of 366.77 crore." The organization has reported a deficit of Rs 139 crore in the last fiscal. "Even after paying an interest of 8.5 percent the EPFO would have a surplus of Rs 6.4 crore during in the end of this fiscal," said EPFO official. The organization is expected to earn an income of Rs 12,994 crore in 2009-10.