FPFO leaves decision on PF interest rate to finance ministry

23 Dec 2011

1

The finance ministry will take a decision on the interest rate payable on provident fund deposits for the current financial year as the Employees' Provident Fund Organisation (EPFO) failed to take any decision amidst differences between representatives of employees and employers.

The EPFO asked the finance ministry to decide on the interest rate payable on PF deposits for the current fiscal as representatives made various suggestions on interest payments that could not relate to one another.

EPFO will now forward the various suggestions in respect of payment of interest on provident fund deposits for a final decision by the finance ministry, labour minister Mallikarjun Kharge said after a meeting of the Central Board of Trustees (CBT), the policymaking body of the EPFO.

''The trustees also considered an agenda on recommendation of rate of interest for the year 2011-2012 to the government and decided that the matter may be referred to the ministry of finance, Government of India along with all recommendations,'' he said.

The board of trustees also placed the recommendations of the expert committee on employees' pension scheme – 1995 before the Pension Implementation Committee. The board decided to convene an emergency meeting separately on it.

The board also approved an item on Citizens' Charter of EPFO. The charter includes:

  • Settlement of claims within 30 days of receipt in complete form.
  • Issuance of annual account slips by 30 September of the year following the close of the financial year.
  • Redressal of grievances within 30 days.

The EPFO has suggested a rate of interest at the rate of 8.25 per cent for the fiscal.

The trade union members have insisted that the interest rate on PF accounts should be 9.5 per cent while the representatives of employers wanted the interest rate to be fixed at 8.5 per cent.

Meanwhile, French ambassador Francois Richier today called on Kharge and discussed ''matters of mutual bilateral interest.''

Speaking after the meeting, Kharge said ''there is a high degree of political understanding and convergence of views between the two sides.''

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