PF Body May Announce Interest on Funds for 2014-15 in August

New Delhi: The Employees' Provident Fund Organisation (EPFO) may take a decision on rate of interest on PF deposits to be provided for the current fiscal year (2014-15) to its over 5 crore subscribers in its trustees meet scheduled next month.

"The proposal on rate of interest on PF deposits is likely to be discussed in the next meeting of the Central Board of Trustees (CBT) scheduled on August 21 and the trustees can decide the rate of interest," Bharatiya Mazdoor Sangh all-India general secretary Virjesh Upadhyay, who is also an EPFO trustee, told PTI.

Retirement fund body EPFO had provided a rate of interest of 8.75 per cent on PF deposits for 2013-14 which was higher than 8.5 per cent paid for the previous fiscal year (FY13).

As per practice, the CBT decides the rate of interest based on income estimates for a financial year by the EPFO, which later requires concurrence by the Finance Ministry.

According to an office circular, the 204th meeting of the CBT has been scheduled on August 21 at EPFO headquarters in Delhi.

"We will write to the Labour Minister that besides rate of interest, the trust should take up the proposal of setting up workers' bank using PF funds," Mr Upadhyay added.

There were talks about setting up of workers' bank using PF funds to improve upon the yields of the EPFO investments so that higher returns could be paid to subscribers.

He said that he would also propose to introduce a medical benefit scheme for pensioners using employees' deposit-linked insurance funds with the PF body.

The CBT is headed by the Union Labour Minister with Minister of State for Labour, Labour Secretary, unionists, employers' representatives and other officers on its board.