Dear All,
The Employees' Provident Fund Organisation (EPFO) may raise the interest rate to 8.75% for the current financial year, compared to the 8.5% paid last year. This could potentially help over 8 crore subscribers earn higher returns during a period of high inflation.
EPFO's central board is scheduled to meet on Monday to decide the interest rate for 2013-14. EPFO sets the rate based on the interest earned on its investments, a majority of which is in government securities, and its expenses. EPFO manages a corpus of over Rs 5 lakh crore and is a basic source of retirement funds for lakhs of Indians. Although it was initially looking at maintaining the interest rate at 8.5%, EPFO has found some surplus funds, which may allow them to increase the payout.
Employees' unions are demanding at least a 9% return, but Labour Minister Oscar Fernandes said that the interest rate is based on EPFO's earnings. "We can't cross-subsidize," he said on Sunday evening. EPFO is estimated to have an income of around Rs 21,000 crore in the current financial year, and increasing the payout to 9% will result in an additional burden of around Rs 1,200 crore.
Regards,
Loknath
From India, New Delhi
Acknowledge(0)
Amend(0)
3The Employees' Provident Fund Organisation (EPFO) may raise the interest rate to 8.75% for the current financial year, compared to the 8.5% paid last year. This could potentially help over 8 crore subscribers earn higher returns during a period of high inflation.
EPFO's central board is scheduled to meet on Monday to decide the interest rate for 2013-14. EPFO sets the rate based on the interest earned on its investments, a majority of which is in government securities, and its expenses. EPFO manages a corpus of over Rs 5 lakh crore and is a basic source of retirement funds for lakhs of Indians. Although it was initially looking at maintaining the interest rate at 8.5%, EPFO has found some surplus funds, which may allow them to increase the payout.
Employees' unions are demanding at least a 9% return, but Labour Minister Oscar Fernandes said that the interest rate is based on EPFO's earnings. "We can't cross-subsidize," he said on Sunday evening. EPFO is estimated to have an income of around Rs 21,000 crore in the current financial year, and increasing the payout to 9% will result in an additional burden of around Rs 1,200 crore.
Regards,
Loknath
From India, New Delhi
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Epfo-circular-d t-23-sept-2016- declaration-for m-new-form-11.p df