New Delhi July 4 (ANI): A crucial meeting of the Central Board of Trustees (CBT) of Employees Provident Fund Organisation (EPFO) has decided to retain the 8.5 percent interest rate return on provident fund contributions.
The decision has come on expected lines as payment of a higher rate of interest than 8.5 percent would have resulted in a deficit in the EPFO's account.
The EPFO's highest policymaking body chaired by Labour Minister Mallikarjun Kharge decided to retain the 8.5percent interest on employees provident fund for the fifth consecutive year. Over 4.5 crore employees are expected to gain from today's decision.
The decision of the CBT which came just two days before the presentation of general budget is expected to leave a surplus of Rs 6.4 crore during the current fiscal. CBT has sent its decision to Finance Ministry for the approval.
According to sources, the EPFO has no reserves left to pay a higher interest rate than 8.5 per cent in this fiscal as it had suffered a Rs 139-crore deficit during 2008-09 for maintaining the same rate of interest on deposits.(ANI)