Retirement fund body Employees Provident Fund Organisation (EPFO) has estimated over 14 per cent increase in its incremental deposits...
Retirement fund body Employees Provident Fund Organisation (EPFO) has estimated over 14 per cent increase in its incremental deposits this fiscal at Rs 79,377 crore.
The EPFO’s apex decision making body the Central Board of Trustees (CBT) has approved the revised estimates of Rs 79,377 crore 2014-15 as contributions showing an increase of over 14 per cent in its meeting yesterday, a senior official said.
According to the information available, the EPFO had received Rs 71,195 crore as incremental deposits from its over five crore subscribers under social security schemes run by it during 2013-14, which was 16 per cent higher than Rs 61,143 crore collected by it in 2012-13.
Out of Rs 79,377 crore contribution this fiscal, it is estimated Rs 59,346 crore is expected as provident fund contribution, Rs 19,000 crore as pension contribution and Rs 1,031 as Employees’ Deposit Linked Insurance Scheme contribution.
The EPFO’s administrative charges is expected to be at Rs 4,905 crore in 2014-15 which is an increase of almost 16 per cent over the last financial year.
A senior official said that the estimates are based on the contributions received so far and could be even higher in view of enhancement of monthly wage ceiling to Rs 15,000.
The body has enhanced the wage ceiling for becoming a member of the EPFO at the time of taking up employment to Rs 15,000 per month from Rs 6,500. The decision was made effective from September 1.
According to the EPFO estimates, the enhanced wage ceiling is expected to bring an additional 50 lakh workers under the ambit of social security schemes run by the EPFO and enhance the incremental deposits substantially.
It is expected the the incremental deposits may touch Rs one lakh crore in the next financial year.
At present, the EPFO is managing a fund size of over Rs 6 lakh crore. It has provided 8.75 per cent rate of return on PF deposits for the current as well as previous fiscal.
Finance Ministry ratified the 8.75 per cent rate of interest on PF deposits recently, paving the way for retaining the same rate of interest in the current fiscal as provided in 2013-14.