The government has approved payment of 8.75 per cent rate of interest on PF deposits in 2013-14 for over five crore subscribers of retirement fund body EPFO.
"The Finance Ministry has given its concurrence to the Employees' Provident Fund Organisation's (EPFO) trustees' decision to provide 8.75 per cent rate of interest to its members for the current fiscal," an official said.
EPFO's apex decision making body, the Central Board of Trustees (CBT) headed by Labour Minister had decided to raise interest rate for the current fiscal to 8.75 per cent from 8.5 per cent paid in 2012-13, in its meeting held on January 13.
The CBT decision was sent to the Finance Ministry for vetting. Since the Fiance Ministry has given its concurrence to the decision, the interest would be credited into the accounts of subscribers, he said.
EPFO estimated an income of Rs 25,048.55 crore (Rs 250.48 billion) for 2013-14. As per its estimates, the payment of interest rate at 8.75 per cent would require Rs 25,005.41 crore (Rs 250.05 billion) and there would be a surplus of Rs 43.14 crore (Rs 431.4 million).
According to the official, the Finance Ministry has asked the Labour Ministry to expedite the updation of EPFO's subscribers' accounts till March 31, 2014.
Now the Labour Ministry would communicate the approval of the Finance Ministry to the EPFO for crediting the said rate of interest in the PF accounts of its members for the current fiscal and settle claims accordingly.