Wednesday, June 24, 2009

EPFO to decide interest rate on PF deposits on July 4

Employment Provident Fund Organisation's advisory body Central Board of Trustees is likely to decide the interest rate on PF deposits for the fiscal 2009-10 at its meeting on July 4.

"The Central Board of Trustees (CBT) is expected to decide the interest rate for this fiscal on provident fund deposits during the meeting scheduled on July 4," an EPFO source said.

Once the CBT, which is headed by the Labour Minister, recommends the interest rate on provident fund deposits, it is sent to the Finance Ministry for final approval.

"The CBT is in a position to recommend 8.5 per cent interest rate for 2009-10, the same that depositors received in the previous fiscal," he said, adding that the final decision will be taken by the trustees.

At present, there are about 4.49 crore provident fund subscribers and they have been receiving 8.5 per cent interest on their deposits since 2005-06.

Even after paying an interest of 8.5 per cent, the source said, "the EPFO would have a surplus of Rs 6.4 crore during 2009-10." The organisation is expected to earn an income of Rs 12,994 crore in 2009-10.

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