Over 5 crore subscribers of Employees' Provident Fund Organisation (EPFO) will get a higher interest rate on their provident fund (PF) deposits.
Labour minister Oscar Fernandes on Monday said the EPFO has decided to provide 8.75 per cent interest to its subscribers for the year 2013-14.
"We have decided to recommend to the government 8.75 per cent rate of interest for 2013-14 to its subscribers," Mr Fernandes said.
In 2012-13, provident fund subscribers got an interest rate of 8.5 per cent and in 2011-12, 8.25 per cent. EPFO had surplus funds which enabled the interest rate to be increased from 8.5 per cent in the previous financial year (2012-13), PTI said quoting sources.
The Central Board of Trustees, which is the apex decision-making body of the Employees' Provident Fund Organisation (EPFO), met today and approved the interest rate.
Once approved by the Central Board of Trustees of the EPFO, the decision on the interest rate requires approval of the Finance Ministry, which has to notify it. The interest is credited to the accounts of subscribers after the new rate is notified.
As per norms, the EPFO is expected to announce the rate of interest on PF deposits before the start of the financial year. However, for the past few years, the announcement of the rates had been delayed.