The Finance Ministry has approved 8.7 per cent interest on PF deposits for over 5 crore subscribers of retirement body EPFO, lower than 8.8 per cent decided by the Central Board of Trustees (CBT).
This is probably the first time that the Finance Ministry has not given concurrence to the rate of interest on EPF as decided by CBT.
- EPFO had provided 8.75 per cent rate of interest in 2013-14 and 2014-15, which was higher than 8.5 per cent in 2012-13 and 8.25 per cent in 2011-12.
The EPFO pays rate of return to its subscribers on the basis of returns it generates from its investments.
Employees' Provident Fund Organisation:
- The Employees' Provident Fund Organisation (EPFO), is a statutory body of the Government of India under the Ministry of Labour and Employment.
- It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme.
- It is also the nodal agency for implementing Bilateral Social Security Agreements with other countries on a reciprocal basis.
- The schemes cover Indian workers as well as International workers (for countries with which bilateral agreements have been signed. As of now 15 Social Security Agreements are operational).
- It is one of the largest social security organisations in India in terms of the number of covered beneficiaries and the volume of financial transactions undertaken.
- The EPFO's apex decision making body is the Central Board of Trustees (CBT)
No comments:
Post a Comment