Monday, 19 December 2016

EPFO(Employees' Provident Fund Organisation) cuts interest rate to 8.65%-The Total Investment & Insurance Solutions

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19 December 2016

The Employees' Provident Fund Organisation on Monday lowered the interest rate on deposits to 8.65% for fiscal 2016-17 from 8.8% in 2015-16, said a member of its apex board of trustees.

"The Central Board of Trustees has take a decision to reduce the interest rate on EPFO's deposits to 8.65% as per the guidelines of the Comptroller Audit General (CAG), which objected to 8.8% interest rate," CBT member and INTUC Vice President Ashok Singh told IANS after the meeting here. The Total Investment & Insurance Solutions

Admitting that the trade union leaders and cadres were not happy with the board's decision to lower the interest rate on their savings, Singh said they would appeal to the Finance Ministry to retain the interest rate given in the last fiscal.

"We have conveyed to the board chairman (Union Labour Minister Bandaru Dattatreya) our unhappiness on lowering the interest rate by 0.15%, which has been calculated on the basis of the CAG guidelines. The Total Investment & Insurance Solutions

"The CAG has observed that interest earned on the retirement fund (EPF) cannot be considered as income to retain the interest rate on its deposits at 8.8%," he said.

The retirement fund will recommend the lower interest rate to the finance ministry for notification soon. The Total Investment & Insurance Solutions

The meeting was attended by all the trustee members, representing the employees, employers, state government and officials of the Labour and Finance Ministries.The Total Investment & Insurance Solutions

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