Retirement fund body EPFO is likely to increase the interest rate on PF deposits for 2015-16, from 8.75 per cent fixed for the last two financial years, during its trustees’ meet tomorrow.
“Though the proposal for fixing rate of interest on PF deposits is not listed on agenda, the EPFO’s apex decision making body the Central Board of Trustee (CBT) can announce rate in its meeting scheduled tomorrow,” according to a source.
The source further said the meeting is called mainly to discuss the restructuring of Employees’ Provident Fund Organisation (EPFO), but since the EPFO has worked out income projections for the current fiscal, the rate of interest can be fixed in tomorrow’s meeting.
The income projections for the current fiscal suggest that the body can pay rate of interest which is slightly higher than 8.75 provided in 2013-14 and 2014-15.
The Finance Ministry, however, wants EPFO to retain the existing interest rate of 8.75 per cent for FY 2015-16.
During a recent meeting of top officials from the finance and labour ministries, the former urged the latter to retain the interest rate at 8.75 per cent for the current fiscal as well in view of the government’s intention to reduce rate of returns on small saving schemes and PPF, said the source.
However, fixing the interest rate solely depends on the EPFO’s apex decision making body CBT, headed by the Labour Minister, as the body provides rate of return from its own income.