8.5 per cent interest on your PF for 2006-07
The Employees Provident Fund Organisation will continue to pay 8.5 per cent interest rate for the year 2006-07, reports Sutirtho Patranobis.business Updated: Jul 24, 2007 05:14 IST
The Employees Provident Fund Organisation (EPFO) will continue to pay 8.5 per cent interest rate for the year 2006-07. The decision — impacting about four crore subscribers — was taken at a meeting of the EPF Central Board of Trustees headed by Minister for Labour and Employment Oscar Fernandes on Monday.
“Amid protests by some trade-union representatives, it has been decided to pay 8.5 per cent interest rate on provident fund,” Fernandes said after the meeting.
The Board will submit its recommendations to the Finance Ministry, which is expected to notify the rate shortly.
The decision to retain 8.5 per cent interest will put a burden of Rs 450 crore on the EPF fund but the deficit could be offset by a surplus of Rs 535 crore lying in the interest suspense account.
A sub-committee was formed at the last meeting of the Board to look into its finances between 2001 and 2006. “The sub-committee found that Rs 535 crore was lying in the suspense account as surplus. This surplus could be distributed as interest among the subscribers,” D.L. Sachdev of the All India Trade Union Congress (AITUC) told the Hindustan Times.
The report was considered and accepted by the Board.