 "No proposal to hike EPFO interest rates: Vishnu Deo Sai")
The government does not propose to increase interest rates for Employee Provident Fund Organization (EPFO) subscribers, Visnu Deo Sai, state minister for steel, mines, labour and employment informed the Lok Sabha today through a written reply.
Retirement body EPFO provided 8.75% interest rate for 2013-14, which was an increase from 8.50% rate provided by the body in 2012-13.
There were reports that the EPFO will likely provide 9% interest rate for 2014-15, however, chief Provident Fund Commissioner KK Jalan had denied this in an interview to Business Standard last month saying that this was not feasible.
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"We have never calculated this. Overall, interest rates are going down; debt instruments are not earning that much. When the equity is up, debt instruments are usually down. So, I don't think we will be able to give that much," Jalan had said.
As on 31 March this year, the EPFO manages funds of over 117.81 million members and 7,95,927 establishments.