New Delhi, Feb 28 (Calcutta Tube) Over 4.7 crore Provident Fund (PF) beneficiaries are expected to get a return of 8.5 percent for the next fiscal on their PF deposits. It is similar to the past five year’s rate, an official said Sunday.
The Employees Provident Fund Organisation (EPFO) had offered 12 percent as a rate of return between 1989 and 2000.
The Finance and Investment Committee (FIC), an advisory body of the EPFO, met here and decided to keep the interest rate of PF deposits at 8.5 percent for the next fiscal 2010-11.
According to an official, the decision taken by the FIC will now be taken up before the Central Board of Trustees (CBT), an apex body of the EPFO, for its final approval.
‘Despite opposition from the trade union representatives, the FIC has maintained 8.5 percent interest rate on deposits for 2010-11 as an increase in interest rate to 8.75 percent would result in a deficit of over Rs.426 crore,’ said an official.
EPFO expects to add Rs.15,036 crore in 2010-11 by maintaining the rate of interest.