Dear All ,
EPFO may raise interest rate to 8.75%
New Delhi: The Employees Provident Fund Organisation may increase the the interest rate on your statutory savings to 8.75% for the current financial year, compared to 8.5% paid last year, helping over 8 crore subscribers earn higher returns during a period of high inflation.
EPFO’s central board is scheduled to meet on Monday to decide the interest rate for 2013-14. EPFO fixes the rate based on the interest earned on its investment, a majority of which is in government securities, and it’s expenses. EPFO manages a corpus of over Rs 5 lakh crore and is a basic source of retirement fund for lakhs of Indians. Although it was initially looking at maintaining the interest rate at 8.5%, EPFO has found some surplus funds, based on higher returns to increase the payout.
Employees unions are demanding at least a 9% return but labour minister Oscar Fernandes said that the interest rate was based on EPFO’s earnings. “We can’t cross-subsidize,” he said on Sunday evening. EPFO is estimated to have an income of around Rs 21,000 crore in the current financial year and increasing the payout to 9% will result in an additional burden of around Rs 1,200 crore.
Regards
Loknath
EPFO may raise interest rate to 8.75%
New Delhi: The Employees Provident Fund Organisation may increase the the interest rate on your statutory savings to 8.75% for the current financial year, compared to 8.5% paid last year, helping over 8 crore subscribers earn higher returns during a period of high inflation.
EPFO’s central board is scheduled to meet on Monday to decide the interest rate for 2013-14. EPFO fixes the rate based on the interest earned on its investment, a majority of which is in government securities, and it’s expenses. EPFO manages a corpus of over Rs 5 lakh crore and is a basic source of retirement fund for lakhs of Indians. Although it was initially looking at maintaining the interest rate at 8.5%, EPFO has found some surplus funds, based on higher returns to increase the payout.
Employees unions are demanding at least a 9% return but labour minister Oscar Fernandes said that the interest rate was based on EPFO’s earnings. “We can’t cross-subsidize,” he said on Sunday evening. EPFO is estimated to have an income of around Rs 21,000 crore in the current financial year and increasing the payout to 9% will result in an additional burden of around Rs 1,200 crore.
Regards
Loknath
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