Payment of 8.5 per cent rate of interest on PF deposit would leave a small surplus of Rs 56.96 crore in account books, says the agenda for the Employees' Provident Fund Organisation's (EPFO) trustees' meet scheduled on January 13 under the chairmanship of new Labour Minister Oscar Fernandes.
The EPFO, which is estimated to have an income of Rs 20,796.96 crore in the current fiscal, needs Rs 20,740 crore to pay 8.5 per cent interest to its subscribers.
"Payment of interest to the members is expenditure for the Trust (EPFO), which is to be met out of its earnings. Thus, the rate of interest should be commensurate with the total earnings of the Trust," the EPFO said in its proposal to the trustees.
EPFO's apex decision making body -- the Central Board of Trustees (CBT), headed by Labour Minister -- would meet on January 13 after a gap of almost one year.
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Once approved by the CBT, the decision on the interest rate requires concurrence of the Finance Ministry, which has to notify it. The interest is credited to the accounts of subscribers after the rate is notified.
According to norms, the EPFO is expected to announce the rate of interest on PF deposits before the start of the financial year.
However, for the past few years, the announcement of the rates has been delayed.