FinMin to approve 8.5% interest for EPFO subscribers
NEW DELHI: The Finance Ministry is expected to approve payment of 8.5 per cent interest rate for EPFO subscribers for 2012-13 after a recommendation from the Central Board of Trustee (CBT). This move is likely to benefit over 50 million subscribers.
CBT is an apex decision-making body of the Employees Provident Fund Organisation (EPFO). The CBT decided to pay the revised rate of interest to subscribers on February 25.
The All India Trade Union Congress has discussed the issue of delay in implementing of EPFO's decision with the Labour Ministry.
As per the procedure, CBT’s decision on interest rate requires ratification by the Finance Ministry. It has been sent for this purpose and the approval is expected this week.
The new interest rates will make way for smoother settlement of claims.
The EPFO is required to announce the rate of interest at the beginning of the financial year. However, this year it has been notified at the end of the financial year.
If there is no such notification, EPFO will settle the claims at 8.25 per cent on PF deposits for 2012-13.