Thursday, February 7, 2013

EPF interest may increase to 8.5%, Aadhar not mandatory

Over 50 million subscribers of the Employees' Provident Fund Organisation may get 8.5 per cent return on their investment during 2012-13, higher than 8.25 per cent provided in the last fiscal.
The proposal is likely to come up for discussion at a meeting of its apex decision making body, the Central Board of Trustees (CBT), scheduled on February 15, a source said.

"The EPFO has worked out 8.5 per cent rate of return for the current fiscal. It will not leave any deficit. However, the proposal has not been finalised as yet," the source added.

The EPFO had paid 9.5 per cent interest in 2010-11, before scaling it down to 8.25 per cent in 2011-12 fiscal.

EPFO will place the proposal regarding the interest rate before its advisory body Finance and Investment Committee (FIC) at its meeting on February 14. Once approved by the FIC, it will go to Labour Minister-headed CBT for final approval.

The notification on interest rate is issued by the government after concurrence by the Finance Ministry.


It has been decided by EPFO not to make Aadhaar Number mandatory for EPF members from 1st March, 2013. Discussions held with UIDAI officials and the time required in the process of obtaining Aadhaar numbers it it was found that it may not be possible to obtain Aadhaar number/ Aadhaar Enrollment number by EPF members by 1st March, 2013.
Click here for the official letter

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