New Delhi, October 20
The centre today notified the rate of interest for Employees Provident Fund (EPF) for the year 2006-07 at 8.5 per cent. The government’s notification is based on the recommendation of the Central Board of Trustees of EPF.

Over four crore subscribers of EPF would benefit from the notification. The 8.5 per cent interest will lead to dispersal of Rs 7,550 crore in the accounts of provident fund subscribers, but will not result in any deficit for 2006-07.

“All regional provident fund commissioners (RPFCs) have been instructed to immediately give effect to the above and issue annual statement of accounts for the year 2006 at the earliest possible,” an official statement said here.

“The chairman CBT, EPF and minister of state (independent charge), labour and employment, has directed that issue of annual accounts for the year 2006-07 is required to be done on war footing,” it said.

The EPF Scheme, 1952, requires that the interest shall be credited to the account of each member at such a rate as determined by the central government in consultation with the Central Board of Trustees (CBT).

The CBT, which met on July 23, 2007, to consider the proposal for determination of rate of interest payable to the members of the year 2006-07, had fixed 8.5 per cent despite severe opposition from trade unions that were seeking higher returns at the time when even bank fixed deposits were paying attractive interest rates.