Govt retains 8.75% interest on PF deposits for 2014-15

New Delhi, December 19 Over five crore subscribers of the Employees Provident Fund Organisation (EPFO) will get 8.75% interest this fiscal on their provident fund deposits — the same rate as the previous year. “Finance Ministry has ratified the decision of the EPFO’s Central Board of Trustees (CBT) to retain 8.75% rate of interest for the current fiscal,” said a source. The rate was same in the previous year, 2013-14, when it was raised from 8.5% in the 2012-13 fiscal. This rate of interest on PF deposits would now need to be notified by the Labour Ministry and the Income Tax Department. The decision would be implemented from the date of notification, a senior official said. The CBT had decided to retain the interest rate on PF deposits at 8.75% for the current fiscal at its meeting on August 26. As per the practice, decision of the trustees of Employees’ Provident Fund Organisation on interest rate is implemented after the concurrence of the Finance Ministry. According to the EPFO’s income projection, payment of 8.8% rate of interest would have left a surplus of Rs 77.15 crore. But since the income projection of Rs 29,136.42 crore for the current fiscal was done without factoring in interest payment burden due to enhanced wage ceiling, EPFO had suggested 8.7% rate of return on PF deposits for 2014-15. The body recently enhanced the wage ceiling for becoming member of the scheme at the time of joining a job to Rs 15,000 from Rs 6,500 per month. The new wage ceiling is effective from September 1. — PTI