EPFO to decide interest on PF deposits for 2013-14 on Jan 13

Retirement fund body EPFO has rescheduled the meet of trustees to January 13 when it will announce interest rate on PF deposits for 2013-14 and may offer its over 5 crore subscribers a little more than 8.5 per cent given in 2012-13.
The Central Board of Trustees (CBT), headed by the Labour Minister, the apex decision-making body of the Employees' Provident Fund Organisation (EPFO), will consider the interest rate and other matters at the meet which was initially scheduled for January 14.
"EPFO had convened a meeting of CBT on January 14 which has been rescheduled to January 13 next year. The meeting is rescheduled because Eid Milad-un-Nabi will fall on January 14," EPFO's Central Provident Fund Commissioner K K Jalan told PTI.

"Among other issues, rate of interest for 2013-14 will be discussed and approved by the trustees. The decision on interest on PF deposits is pending for long and it would be taken by the board in the meeting," he added.
A decision on the interest rate is pending as the CBT has not met after it was reconstituted in May.
According to the EPFO's income estimates for the current financial year, the body may be able to offer an interest rate that is slightly higher than 8.5 per cent for 2013-14.

Once approved by the CBT, the decision on the interest rate requires concurrence of the Finance Ministry, which has to notify it. The interest is credited to the accounts of subscribers after the rate is notified.

As per norms, the EPFO is expected to announce the rate of interest on PF deposits before the start of the financial year. However, for the past few years, the announcement of the rates had been delayed.
The EPFO's rate of interest was 8.5 per cent for 2012-13, up from 8.25 per cent in 2011-12.