PF interest rate to be 8.5% for 2012-13, higher than last year

Around five crore provident fund holders would get an interest of 8.5% on their money deposited with Employee Provident Fund Organisation (EPFO) for financial year 2012-13.

Around five crore provident fund holders would get an interest of 8.5% on their money deposited with Employee Provident Fund Organisation (EPFO) for financial year 2012-13. This is 0.25% higher than the interest rate for the last financial year but less than 9.5 % disbursed in 2010-11.

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A decision in this regard was taken at the meeting of the Central Board of Trustees headed by labour minister Mallikarunj Kharge even though trade unions protested seeking higher interest rate. The final notification would be announced after taking finance ministry’s approval. There are around five crore active PF account holders, who would benefit from the marginal hike in interest rate.

The organisation had estimated that 8.6% of interest rate would be resulted in deficit of Rs. 240 crore whereas 8.5 % means a surplus of Rs. 4 crore.