Retirement fund body EPFO on Tuesday announced 8.75 per cent rate of interest on provident fund deposits for the current fiscal, a move which would benefit its over five crore subscribers across the country.
The decision to retain interest rate of 8.75 per cent was taken at a meeting of EPFO's apex decision making body the Central Board of Trustees chaired by Labour Minister Narendra Singh Tomar here in the capital.
"EPFO will provide 8.75 per cent rate of interest on PF deposits for 2014-15," Tomar told reporters after CBT meeting. As per practice, now the Employees' Provident Fund Organisation's (EPFO) trustees' decision would be implemented after the concurrence of the finance ministry. EPFO's Central Provident Fund Commissioner K K Jalan said, "The benefit under the Employees' Deposit Linked Insurance (EDLI) Scheme would be increased to a maximum sum assured of Rs 3.6 lakh from existing Rs 1.56 lakh."
The sum assured under EDLI is provided in proportion to monthly wage ceiling which is Rs 6,500 at present. It would be enhanced to Rs 15,000 per month soon. Senior Labour Ministry officials present in the meeting apprised the board that the notification regarding enhancement of wage ceiling has been sent to press after Law Ministry's clearance and will be reality soon. They also told that the notification providing minimum monthly pension entitlement of Rs 1,000 under the Employees' Pension Scheme run by EPFO will also be notified simultaneously. After notification, around 28 lakh pensioners getting less than Rs 1,000 per month would immediately benefit.
At present all those employees with basic wages of up to Rs 6,500 per month at time of joining, can become member of EPFO schemes. Now with increase in wage ceiling around 50 lakh more workers are expected to come under the ambit of EPFO. The minister also revealed that the board has decided to appoint credit rating agency CRISIL as consultant for the third time to engage new fund managers and evaluate their performance for three-year term beginning April 1, 2015.