Provident fund interest rate hike proposed
Proposed 0.25% increase in interest rate for fiscal year 2013-14 by Employees Provident Fund Organisation to benefit around 5 crore salaried employees.
India’s retirement fund body, the Employees Provident Fund Organisation (EPFO) will suggest to the government an increase in interest rates on provident fund (PF) deposits. The interest rate proposed for 2013-14 is 8.75%, up from 8.5% in the previous year. This decision is estimated to benefit about 5 crore subscribers. This recommendation is to be put forward to the finance ministry. Upon approval, the new interest rate will be credited to the accounts of subscribers.
Additionally, the EPFO has decided to increase the cover on its Employees’ Deposit Linked Insurance (EDLI) Scheme, and the maximum sum assured has been bumped up to Rs1,56,000 from the earlier Rs1,30,000. The EDLI is a sort of life insurance policy that an employer can take for its employees.