Over fifty million subscribers of the retirement and pension body EPFO could get 8.6 per cent interest on their investment throughout 2012-13, more than 8.25 per cent provided within the last financial year. EPFO probably to provide 8.6% interest in 2012-13 to its subscribers of Employees Provident Fund.
The EPFO has figured out 8.6 per cent rate of interest for this financial year. As per the EPFO Sources, Payment of 8.6 per cent interest won’t lead to any deficit to the organisation.
The Employees Provident Fund Organisation (EPFO) paid 9.5 per cent interest in 2010-11, before sliding it to 8.25 per cent in 2011-12 financial year.
As per the organisation, sources, the EPFO may even pay higher interest of around 9 per cent by appropriating returns on Rs 22,000 crore corpus lying in non operative accounts.
The non operative accounts are those accounts whereby the contribution has not been received for thirty six months. EPFO had last year determined to not credit interest earned from the non operative accounts.
Under normal circumstances the EPFO is anticipated to announce rate of interest for provident fund at the start of the year.
In view of the delay in announcement of rate of interest for this financial year, the trade unions are pressing for an early meeting of the Central Board of Trustees (CBT), the top deciding body of the EPFO, to determine on the rate of interest for this financial year.