EPFO to decide interest on PF deposits for 2013-14 on January 14
Decision on interest rate on PF deposits to be taken during the CBT meeting on January 14th.
New Delhi: Retirement fund body EPFO will announce the interest rate on PF deposits for the current financial year on January 14 and may offer its over 5 crore subscribers a little more than 8.5 per cent provided in 2012-13.
The Central Board of Trustees headed by the Labour Minister, which is the apex decision-making body of the Employees' Provident Fund Organisation (EPFO), will consider the interest rate and other matters at next month's meeting.
"EPFO has convened a meeting of CBT on January 14 next year. Among other issues, the rate of interest for 2013-14 will be discussed and approved by the trustees," EPFO's Central Provident Fund Commissioner K K Jalan told PTI.
Jalan said, "The decision on interest rate on PF deposits for this fiscal is pending for long and a decision would be taken by the board in the next meeting." A decision on the interest rate could not be taken as the CBT has not met after it was reconstituted in May.
According to the EPFO's income estimates for the current financial year, the body may be able to offer an interest rate that is slightly higher than 8.5 per cent for 2013-14. Once approved by the CBT, the decision on the interest rate requires concurrence of the Finance Ministry, which has to notify it.
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 of the rates has been delayed. The EPFO's rate of interest was 8.5 per cent in 2012-13, up from 8.25 per cent in 2011-12.