|Monday, August 13, 2007|
|Ministry of Labour & Employment|
NO PROPOSAL TO INCREASE RATE OF INTEREST ON EPF TO MATCH BANK RATE
There is not any proposal to increase the rate of EPF to bring it at par with the rates provided by banks. This was stated by the Minister of State (Independent Charge) of Labour and Employment, Shri Oscar Fernandes in a written reply in Lok Sabha today. He said the rate of interest declared to be credited in 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 Minister said that while recommending the rate of interest for a particular year, the estimated liabilities on account of interest payable to members as well as estimated interest earnings are taken into consideration by the Board. The recommended interest rate is directly proportional to the earnings realised on EPF investments. The Minister said that as per the information provided by SBI, the rates of FDs offered to senior citizens have ranged between 5.50% to 8.75% during the period 1st January 2004 to 31st March 2007.
Shri Fernandes said that the rate of interest declared by the Government for the years 2004-05 and 2005-06 was 9.5% and 8.5% respectively. The rate of interest recommended by the Central Board of Trustees, Employees’ Provident Fund for the year 2006-07 is 8.5%. However, the rate of interest for the year 2007-08 has not so far been recommended by the Board.
MLD:LK:L-93(no proposal to increase epf rate)(13.8.07)