EPFO keeps interest rate on PF deposits for 2014-15 unchanged at 8.75%
26 Aug 2014
The Employees Provident Fund Organisation (EPFO) has fixed interest rate on PF deposits for 2014-15 at 8.75 per cent, unchanged from the interest rate paid on PF deposits for 2013-14. The final notification for payment of the interest rate for the current fiscal will be issued by the finance ministry later.
The decision to retain interest rate of 8.75 per cent was taken at a meeting of EPFO's apex decision making body the Central Board of Trustees chaired by labour minister Narendra Singh Tomar.
"EPFO will provide 8.75 per cent rate of interest on PF deposits for 2014-15," Tomar told reporters after CBT meeting.
''It has been decided to pay 8.75% interest in the current fiscal,'' Central Provident Fund Commissioner (CPFC) KK Jalan was quored as saying after the meeting of the Central Board of Trustees (CBT), the apex decision making body of the Employees' Provident Fund Organisation (EPFO).
The EPFO has about 50 million subscribers and the decision will have a bearing on the finances of the central government. It had last year raised interest rates to 8.75 per cent from the 8.5% paid in the previous fiscal.
The decision to retain the interest rate on the provident fund deposits at last year's level was taken despite some protest by the trade union members of the CBT, sources said.
Jalan also said, "The benefit under the Employees' Deposit Linked Insurance (EDLI) Scheme would be increased to a maximum sum assured of Rs3.6 lakh from existing Rs1.56 lakh."
The sum assured under EDLI is provided in proportion to monthly wage ceiling which is Rs6,500 at present. It would be enhanced to Rs15,000 per month soon.
Labour ministry officials said the notification providing minimum monthly pension entitlement of Rs1,000 under the Employees' Pension Scheme run by EPFO will also be notified simultaneously. After notification, around 28 lakh pensioners getting less than Rs1,000 per month would immediately benefit.