EPF board decides to continue with 8.5 per cent interest

The Central Board of Trustees of EPFO decide to continue with the 8.5 per cent rate of interest for the year 2007-08.

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.

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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.