The Central Board of Trustees of the Employees Provident Fund (EPF) Organisation on Thursday decided to continue with the 8.5 per cent rate of interest for the year 2007-08.
The decision, which would impact four crore subscribers, was taken at a meeting of the board, which is chaired by Union Minister for Labour and Employment, Oscar Fernandes.
A government release said in the evening that the board had considered the agenda for declaration of interest for the year 2007-08. “After considering the facts, the board noted that an interest rate of 8.5 per cent can be declared as a sustainable rate,” the release said.
It added: “some members reiterated their demand for declaration of a rate of 9.5 per cent. The board after considering all aspects decided to recommend to the government 8.5 per cent as rate of interest for 2007-08.”
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.