Govt approves 8.75% interest on EPF deposit for 2013-14

EPFO estimated an income of Rs 25,048.55 crore for 2013-14

The government has approved payment of 8.75 per cent interest on provident fund (PF) deposits in 2013-14 for the 50 million subscribers of the retirement fund body Employees' Provident Fund Organisation (EPFO).

"The finance ministry has given its concurrence to the EPFO trustees' decision to provide 8.75 per cent interest to its members for the financial year," an official said.     

The EPFO's apex decision-making body, the Central Board of Trustees (CBT) headed by the labour minister, had decided to raise the interest from 8.5 per cent in 2012-13, in its meeting on January 13.     

The CBT decision was sent to the finance ministry for vetting.

The EPFO had estimated an income of Rs 25,048.5 crore for 2013-14. By its estimates, the payment of 8.75 per cent interest would require Rs 25,005.4 crore, leaving a surplus of Rs 43 crore.     

The official said the ministry had asked the labour ministry to speed the process of updating the subscribers' accounts. Now the labour ministry would communicate the approval of the finance one to the EPFO for crediting the interest.