Mostly Cloudy
19°CThu :Isolated Thunderstorms. High: 31 Low: 19

EPFO approves raising Provident Fund interest rate to 8.75%

EPFO approves raising Provident Fund interest rate to 8.75%

New Delhi: Retirement fund body EPFO on Monday decided to increase the rate of interest on Provident Fund deposits to 8.75 percent for 2013-14, a move that will benefit about 5 crore subscribers.

“We have decided to recommend to the government 8.75 percent rate of interest for 2013-14 to its subscribers,” Labour Minister Oscar Fernandes told reporters after a meeting of the EPFO trustees here.

The Central Board of Trustees, which is the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO), met today and approved the interest rate.

According to sources, the body had surplus funds, which enabled the interest rate to be increased from 8.5 percent in the previous financial year (2012-13).

The EPFO’s recommendation will be vetted by the Finance Ministry. Once the ministry approves the decision, the interest would be credited to the accounts of subscribers.

According to sources, the decision to enhance the rate was taken in view of the forthcoming Lok Sabha polls.

The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year.
Payment of interest at the rate of 8.5 percent to subscribers would have required Rs 20,740 crore and left a surplus of Rs 56.96 crore, according to earlier projections.

 

Top Stories

1394443507-2064

Markets trim gains as Budget speech begins

July-10-2014
Markets trimmed some of the gains as investors booked profits at higher levels. At 11:15AM, the 30-share Sensex was up 79 points
arun-jaitley_625x300_51404965378

Budget 2014: Union Cabinet Meets, Approves Arun Jaitley’s Budget

July-10-2014
New Delhi: The Union Cabinet met in Parliament House this morning and approved the Union Budget that Finance Minister Arun Jaitley will
htc-desire-616-specifications

HTC Desire 616 and One (E8) Expected to Be Launched in India on Friday

July-09-2014
HTC has started sending press invites for an event scheduled on July 11 in New Delhi, India. While the invite fails to
sensex

Sensex trading flat; oil & gas, consumer durables stocks major gainers

July-09-2014
The Sensex and the Nifty were trading marginally in the green as investors remaind cautious ahead of the Union Budget to be
M_Id_475664_FM_Arun_Jaitley

FM Arun Jaitley tables Economic Survey: Explained

July-09-2014
Finance Minister Arun Jaitley tables a report on the state of Indian economy on Wednesday, a day before Prime Minister Narendra Modi’s
28-bjp-flag1

Three Bags at BJP Headquarters Trigger Panic

July-09-2014
NEW DELHI: The discovery of three bags at the Bharatiya Janata Party headquarters here triggered panic Wednesday. A couple later came forward