The Finance Ministry on 16 May 2013 approved payment of 8.5 per cent interest rate for 2012-13 from 8.25 per cent in the previous fiscal, which will benefit over 5 crore EPFO subscribers.
The approved payment of interest rate will enable the Employees Provident Fund Organisation’s (EPFO) which is the apex decision making body to settle claims at 8.5 per cent and also credit interest into the accounts of subscribers for 2012-13.
It is important here to note that the Central Board of Trustee (CBT), decision on interest rate is required to be notified by the Finance Ministry. Only after notification, the interest is credited into the accounts of subscribers.
Also, as per the norms, EPFO is anticipated to announce the rate of interest on PF deposits before the commencement of the financial year. But for the past few years, there has been delay in announcement of the rates. This time, the rate of interest is being notified after the end of the financial year.