New Delhi, Jan 24 : The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) has recommended an interest rate of 8.5 per cent for the current fiscal EPF. After considering the facts the board noted that an interest rate of 8.5 per cent could be declared as a sustainable rate.
However, a few members reiterated their demand for declaration of a rate of 9.5 per cent.
Left affiliated trade unions have demanded a 9.5 percent rate of interest. Representatives of employers along with state and central government officials had on many occasions said that the interest rate should be proportionate to returns on investments made to the fund.
The New Delhi headquartered EPFO was established in 1952 consequent to the enactment of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
The organisation, one of the largest in the world in terms of members and volume of financial transactions that it has been carrying on, the EPFO is administered by the Central Board of Trustees.
Presently, the schemes operational under the Act, are the Employees' Provident Fund Scheme, 1952, the Employees' Deposit Linked Insurance Scheme, 1976, and the Employees' Pension Scheme of 1995.