EPF rate to stay at 8.5%

The Central Board of Trustees of the Employees Provident Fund (EPF) today recommended payment of 8.5 per cent interest to the members of the fund for 2006-07.

The much-awaited decision was taken at a special meeting of the Central Board of Trustees presided over by Minister of State (Independent Charge) for Labour and Employment Oscar Fernandes.

The decision came after the board accepted the report of a sub-committee appointed to look into the accounts of the fund. The board said the deficit of Rs 449.90 crore would be met from the interest suspense account.

The fund's expected interest income in 2006-07 would be Rs 7372.67 crore while the liability, at 8.5 per cent rate, would be Rs 7822.57 crore, an official said.

Fernandes said the sub-committee mentioned an accumulated balance of Rs 347.78 crore, Rs 185.69 crore in the contingency reserve fund and Rs 56.69 crore in the special reserve fund, totalling Rs 590.16 crore.