Employee provident fund

Interest rate on EPF Account

Contrary to the expectation of retaining the 8.5% interest rate on the Employee Provident Fund for the financial year 2013-2014, the Employees’ Provident Fund Organisation¬†(EPFO) has decided to ¬†raise the Provident Fund interest rate from 8.5 % to 8.75 % for yr 2013-14. Last year also, in the fiscal year 2012-13, EPFO had increased the interest rate to 8.5% from previous 8.25%.

The EPFO in its proposal to the trustees earlier has observed that “Payment of interest to the members is expenditure for the Trust (EPFO), which is to be met out of its earnings. Thus, the rate of interest should be commensurate with the total earnings of the Trust,”. The EPFO, with an estimated income of approx. Rs 20,797 crore, needed Rs 20,740 crore to pay 8.5 % interest to the subscribers and thus would have left a surplus of around Rs. 57 crores.

The Central Board of Trustees, which is the apex decision making body of EPFO, has approved the interest rate that will now be forwarded to the finance ministry for formal notification.