This year over 4 crore Employees Provident Fund Organisation (EPFO) subscribers may get a lower rate of interest as compared to 2015, as EPFO has not worked out the income projection for the current fiscal.
The rate of interest is said to be set at 8.6 percent on the PF deposits, which is lower than Finance Ministry’s ratification for 8.7 percent.
EPFO, last financial year had provided 8.8 percent rate of interest on EPF deposits.
According to Zee news
, finance Ministry has been nudging Labour Ministry to keep the interest rate on EPF in line with other small savings schemes administered by it and there is a broad consensus between the two ministries to fix 8.6 percent interest for this fiscal.
The Central Board of Trustees (CBT), EPFO’s apex decision-making body, takes a call on the interest rate on the basis of income projection and fixes the rate of interest for a financial year but this year they have not worked out the projection.
By practice, Finance Ministry gives concurrence to the rate of interest fixed by the CBT considering the income projections of a year and after its ratification, they are notified of the interest rate and amount credited into the accounts of subscribers.
The EPFO had provided 8.75 percent rate of interest in 2013-14 and 2014-15, which was higher than 8.5 percent in 2012-13 and 8.25 percent in 2011-12.