The six crore subscribers of the central Employees Provident Fund Organisation (EPFO) will get an increased rate of interest — 8.50 per cent for 2012-13 — 0.25 per cent more than the 8.25 per cent given during 2011-12.
Labour and Employment Minister Mallikarjun Kharge told The Hindu after chairing the meeting of the Central Board of Trustees that the outgo for the EPFO due to the decision would be around Rs.20,000 crore. His Ministry was planning to give 8.6 per cent interest for 2012-13, but due to a Rs.800 crore deficit it had after giving 9.5 per cent interest (in 2010-11), a sum of Rs.500 crore in deficit was adjusted in 2011-12 by giving 8.25 per cent interest.
“This year [2012-13] the remaining deficit of Rs.300 crore has been adjusted. We have not crossed our limits and are paying from our profits and 8.5 per cent is indeed a good return for the subscribers,” Mr. Kharge said. He said that it was also decided that a permanent account number would be given to each EPF subscriber that would not change even if job or place of work is changed.
