Retirement fund body EPFO will announce the interest rate on provident fund deposits for the current financial year on January 14, and may offer more than 5-crore subscribers a little more than 8.5% given in the year 2012-13.
The Central Board of Trustees (CBT) led by the labour minister, apex decision-making body of the Employees' Provident Fund Organisation (EPFO), will consider the interest rate and other matters at next month's meeting. "The EPFO has convened the CBT meeting on January 14. Among other issues, the rate of interest for the year 2013-14 will be discussed and approved," EPFO's central PF commissioner KK Jalan told PTI.
"The decision on the PF deposits' interest rate for the fiscal is pending for long," said Jalan. The decision was stuck, as the CBT had not met after reconstitution in May. According to the EPFO's income estimates for the current financial year, it may be able to offer an interest rate slightly higher than 8.5%. Once the CBT approves it, concurrence of the finance ministry will be required.
The interest is credited to the accounts of subscribers after the rate is notified. As per norms, the EPFO is expected to announce the rate of interest on PF deposits before the start of the financial year. However, for the past few years, the announcement has been delayed.