Provident Fund interest increased to 9.5 pc

New Delhi, Sep 16: The interest rate on retirement savings has been increased one percent to 9.5 percent for the fiscal year 2010-11, announced the Provident Fund Trustees on Sep 15.

The one percent increase has taken the interest on PF deposits of 4.71 crore organised sector workers to a five-year high from the current level of 8.5 percent.

Although the decision to provide 9.5 percent interest rate would result in a deficit of about Rs 1,600 crore, the same would be made good by a surplus of Rs 1,731 crore in the interest suspense account of the Employees Provident Fund Organisation (EPFO).

The decision was taken during the meeting between Union Labour Minister, Mallikarjun Kharge and the Central Board of Trustees (CBT), the policy making body of the EPFO.

According the ministry sources, the Finance Ministry, which notifies the provident fund interest rate, accepted the recommendation made by the CBT.

OneIndia News