EPFO to retain 8.5% interest rate

The Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) today decided to retain the previous year’s interest rate of 8.5 per cent for the current fiscal.

Trade union representatives in the board have been asking for a 9.5 per cent interest rate, arguing that even banks were paying a higher rate of interest and that the government was being tight-fisted about a fund that was the only social security cover for most of the workers in the organised sector.

The interest rate for 2007-08 was decided only a month ago, with the government rejecting the demands to increase it beyond the previous year’s rate.

Among other issues discussed today, the board also considered an agenda item on coverage of contract employees under the EPF Act and provision of a better social security cover to the existing employees.

The matter will be followed up in a subsequent meeting after obtaining the views from various members.