Friday, March 16, 2012

EPF interest slashed to 8.25%

Government on Thursday slashed interest rate on deposits in Employees Provident Fund from 9.5 per cent to 8.25 per cent for 2011-12 affecting over 4.7 crore subscribers.
This cut was proposed by the Finance Ministry and a notification was issued by the Labour Ministry, official sources said.
The Employees' Provident Fund Organisation (EPFO) had provided 9.5 per cent interest rate to its subscribers for 2010-11 after it found Rs 1,731 crore surplus in its books of account.

The Labour Ministry had recommended 8.6 per cent rate of interest for this fiscal on provident fund deposits to EPFO subscribers.
According to EPFO's income projections, a provision of 8.25 per cent interest for 2011-12 would leave a deficit of Rs 24 lakh. It had further noted that an 8.5 per cent rate of return would translate into a deficit of Rs 526.44 crore.
"Finance Ministry has decided the interest rate based on what EPFO can pay," Labour Secretary M Sarangi said.
The government decision came under sharp attack with Hind Mazadoor Sabha secretary AD Nagpal, who is also an EPFO trustee, saying it was unfair. "We will oppose this decision at the next meeting of the Central Board of Trustees," he said.
In December, EPFO's trustees had failed to decide on the interest rate for the current fiscal following sharp differences among them on the issue and had sought the Finance Ministry's intervention.
While the EPFO had suggested payment of interest at the rate of 8.25 per cent for 2011-12, the trade union members insisted it should be retained at 9.5 per cent.
The representatives of employers wanted the interest rate to be fixed at 8.5 per cent.
(Source : IBNlive With additional inputs from PTI)

No comments :

Contact Us

Viewers may share any information with the administrator in this email
Any news, if approved, may be published in this blog under his /her name.
Related Posts with Thumbnails

Blog Archive

Bookmark This Page

Bookmark and Share
All the information published in this webpage is submitted by users or free to download on the internet. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this page and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. All the other pages you visit through the hyper links may have different privacy policies. If anybody feels that his/her data has been illegally put in this webpage, or if you are the rightful owner of any material and want it removed please email me at "" and I will remove it immediately on demand. All the other standard disclaimers also apply.