Retirement life fund body EPFO will pay at least 8. 5 percent rate of give back on PF remains for 2013-14 to its over 5 crore buyers as provided in the last fiscal and deciding in this regard might be taken as early as next month.
"The Employees' Provident Finance Organisation (EPFO) is not going to pay less in comparison with 8. 5 percent interest rate in PF deposits for the current fiscal, inch an EPFO established said.
"The decision within this regard could be studied in December because body is going to schedule a conference of its height decision making system Central Board connected with Trustees (CBT) the following month, " he added in.
EPFO had provided 8. 5 percent interest rate pertaining to 2012-13, up through 8. 25 percent in 2011-12.
Trade unions have written for the Labour Ministry to urgently convene the actual meeting of EPFO's height decision making body CBT to settle on the interest pace.
Ever since the actual CBT was reconstituted in May, no meeting continues to be held so far. Since the new CBT has not met after its reconstitution in May possibly, no sub-committees might be reconstituted. The term in the sub-committees is co-terminus with the CBT.
The EPFO established said that CBT would have to meet at lowest twice before deciding rate on PF deposits for the current fiscal.
Inside first meeting, the trustee might constitute FIC and in the second meeting they might decide on interest rate based on the recommendations of the committee taking a look at the proposal.
The proposal for the interest rate is cooked by the EPFO which can be vetted by the actual FIC and would go to CBT for ultimate consideration. Once approved from the CBT, the decision on rate requires concurrence connected with Finance Ministry which includes to notify this.
Only after notice, the interest is credited into your accounts of buyers.
As per the actual norms, EPFO is required to announce rate on PF deposits before the start of a financial calendar year. However, for the past few years, there continues to be delay in announcement in the rates.