Estimated 7th Pay Commission pay scales as on 01.01.2016-Gconnect.in

Employees’ Provident Fund Organization will not revise its interim interest rate of 8.8% downward for the current fiscal

New Delhi: Retirement fund body Employees’ Provident Fund Organization (EPFO) will not revise its interim interest rate of 8.8% downward for the current fiscal, labour minister Bandaru Dattatreya said on Friday.

“We will not revise it (interim interest rate) downwards. The revision will be keeping in view the economic trend in the country, interest rates of various schemes as well as the 7th Pay Commission,” Dattatreya told reporters.

When asked about the interim announcement, he said the prevailing situations need to be analysed and after that the CBT (central board of trustees) will again meet in the future to decide the interest rate.

The minister said trade unions had demanded an interest rate of 9%, but paying at that rate would have left the retirement fund body with a deficit of Rs.102 crore. The projected income of EPFO with a subscriber base of four crore is at Rs.34,844 crore, he added.

EPFO’s advisory body, the finance advisory and investment committee, had recommended that 8.95% of interest on provident fund deposits for fiscal 2016 was feasible as it would leave a surplus of Rs.91 crore.

Trade unions’ had demanded for 8.9% interest rate, which would have left a surplus of Rs.285 crore. And in the case of 8.8%, the surplus will be Rs.673 crore, the minister said.

PTI
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