The Hindu : Front Page : EPF interest rate to be 8.5 per cent

Online edition of India's National Newspaper
Wednesday, Jan 11, 2006

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Front Page

EPF interest rate to be 8.5 per cent

Special Correspondent

NEW DELHI: The Government on Tuesday notified the interest rate on Employees Provident Fund (EPF) for the current fiscal at 8.5 per cent.

The Labour Ministry on Tuesday issued a notification to this effect after the Government accepted a recommendation made by the Central Board of Trustees (CBT) of EPF.

Labour Minister K. Chandrasekhar Rao recommended a reduction in the interest rate from 9.5 to 8.5 per cent on December 7 after consultations with senior officers of the Ministry and the EPF Organisation (EPFO).

According to a release issued by the Ministry, the EPFO would meet the deficit liability of Rs. 365.89 crore on account of giving 8.5 per cent interest rate from within its own resources. The EPFO will have to pay Rs. 6,889.04 crore as interest to its subscribers for the current financial year while its projected interest income is around Rs. 6,523.15 crore.

Reacting to the notification, the All-India Trade Union Congress said workers would not rest till the rate of interest was restored at 9.5 per cent. Central trade unions are meeting on Wednesday to decide their course of action.

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