EPFO may pay 8.6 % interest on PF deposits for 2011-12
11 Jan 2012
The Employees Provident Fund Organisation (EPFO) is expected to offer a lower interest of 8.6 per cent on provident fund deposits for the current financial year (2011-12), against 9.5 per cent paid during the last financial year.
The board of trustees of the EPFO had, at its last meeting on 23 December, failed to decide on the current year's interest payment, due to differences among its members.
The ministry of labour and employment had then left a decision on interest rates to the finance ministry.
The labour ministry is now reported to have forwarded its recommendation of an 8.6 per cent interest to the finance ministry, which is likely to be accepted.
Once accepted by the finance ministry, the 47 million PF subscribers in the country will get a lower rate of interest – matching interest paid on public provident fund deposits - on their money this year.
The 8.6 per cent interest, although lower compared to the previous year's level, is better compared to the 8.25 per cent interest payment recommended by the EPFO investment committee.
