The Employees Provident Fund Organisation on Tuesday stuck to its decision to pay interest of 9.5 per cent on provident fund deposits for 2010-11, a one per cent increase over the existing 8.5 per cent, which will benefit around 4.71 crore employees.
“The finance ministry had sought some clarifications on the 9.5 per cent interest rate for 2010-11, which have been sent by the labour secretary,” Union labour minister Mallikarjun Kharge said after a two-hour meeting of EPFO’s central board of trustees, its top decision-making body. “I hope after we have answered all their clarifications, they will approve it.”
EPFO has been giving 8.5 per cent interest on deposits since 2005-06. This year it raised the rate by one per cent after an accounting review showed a surplus of `1,731.57 crores in its interest suspense account. But the finance ministry had some doubts about the surplus funds and ordered a special audit.
The CAG had also raised some questions.