EPFO likely to hike interest rate on PF deposits for FY16 today

Zee Media Bureau

New Delhi: In what could bring smile to lakhs of pensioners across the country, retirement fund body EPFO is likely to increase the interest rate on PF deposits for 2015-16, from 8.75 percent fixed for the last two financial years, during its trustees' meet scheduled on Wednesday.

As per sources, the meeting is called mainly to discuss the restructuring of Employees' Provident Fund Organisation (EPFO), but since the EPFO has worked out income projections for the current fiscal, the rate of interest can be fixed in tomorrow's meeting.

The income projections for the current fiscal suggest that the body can pay rate of interest which is slightly higher than 8.75 provided in 2013-14 and 2014-15.

The Finance Ministry, however, wants EPFO to retain the existing interest rate of 8.75 percent for FY 2015-16.

During a recent meeting of top officials from the finance and labour ministries, the former urged the latter to retain the interest rate at 8.75 percent for the current fiscal as well in view of the government's intention to reduce rate of returns on small saving schemes and PPF, sources said.

However, fixing the interest rate solely depends on the EPFO's apex decision making body CBT, headed by the Labour Minister, as the body provides rate of return from its own income.

With PTI Inputs