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Thursday, April 26, 2012

Reduction of Interest Rate on EPF

The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha that as per para 60(1) of the Employees’ Provident Funds Scheme, 1952, rate of interest on the Employees Provident Fund is determined by the Central Government in consultation with the Central Board of Trustees, Employees Provident Fund. Central Government declared 8.25% rate of interest on EPF accumulation for the year 2011-12 based on the earnings of the Fund during the year.

Replying to a written question the Minister said however, requests from various Central Trade Unions have been received to maintain the existing rate of interest.

There is no proposal under consideration to restore the Employees Provident Fund rate of interest at 9.5 percent for the year 2011-12.

The interest rate on the Employees Provident Fund in a particular year depends on the earning of the Fund during that year. Based on the earning of the Fund during the year 2011-12, 8.25 percent rate of interest on the Employees Provident Fund has been approved by the Central Government. 
Source : PIB

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