CENNAI: The Central Board of Trustees of Employees’ Provident Fund Organisation (EPFO) on Tuesday recommended an interest rate of 8.80 per cent for 2015-16 on its retirement funds of employees, said a member.
“The interest rate recommended is 8.80 percent while the employee representatives at the meeting wanted at least 8.95 percent,” Prabhakar J Banasure, a board member and secretary, Bharatiya Mazdoor Sangh (BMS), said. The board meeting held in Chennai was chaired by Union labour minister Bandaru Dattatreya.
“The minister said the rate is interim interest rate. This is something of a new procedure followed by EPFO,” Banasure added. According to him, the interest rate could have been declared after the 2015-16 balance sheet was audited.
Many bank on PF. Reducing interest is not a good move and will affect majority of common people. It could have recovered… Read More
“The chairman said the market is going down and hence higher rate cannot be recommended now,” Banasure said. He said Rs 31,844 crore was the amount available to be distributed as interest to the EPFO subscribers.
Incidentally, EPFO’s financial audit and investment committee earlier said there is potential to offer 8.95 per cent interest rate.