Monday, April 30, 2007

Lok Sabha

The issue regarding rate of interest on Employees Provident fund (EPF) deposits has been deliberated upon by the Central Board of Trustees, Employees’ Provident Fund in its meetings wherein no consensus was reached with regard to rate of interest.

The issue is to be discussed again by the Central Board.

The rate of interest on EPF deposits for the years 2003-04 and 2004-2005 was 9.5% whereas for the year 2005-06 it was 8.5%. However, the rate of interest for the years 2006-07 and 2007-08 has not yet been recommended by the Central Board of Trustees, Employees’ Provident Fund.

The rate of interest to be credited on EPF accounts in any particular year is determined in such a manner that there should be no overdrawal on the Interest Suspense Account as a result of debit thereto of the interest credited to members’ accounts.

The investments made are monitored by the Central Board and suitable recommendations are made from time-to-time for better return, safety and liquidity.

This was stated by the Minister of State (Independent Charge) for Labour and Employment, Shri Oscar Fernandes in written reply in Lok Sabha today.

MLD/LK/L-251( LS- CBT to discuss interest rate on epf) April 30