PF interest raised to 9.5 percent - ALLCGNEWS

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15 September 2010

Home PAY HIKE PF PF interest raised to 9.5 percent

PF interest raised to 9.5 percent


   The government Wednesday raised the interest rate on employees’ provident fund from 8.5 percent to 9.5 percent for this financial year.

    The decision to hike the interest rate will increase returns on investments for over 4.7 crore subsbribers of the EPF scheme. The EPFO currently has a corpus of about Rs.2.5 trillion.

   The EPF rate was last changed in 2005-06 and set to 8.5 percent. Before this, the EPFO had offered 12 percent as a rate of return between 1989 and 2000.

   There was a demand for the interest of 10.5 percent from unions.

    The move will have an impact on the finances of the private companies. Companies, which run provident fund trusts are required to match the rate declared by the government resulting in a bigger outgo under this head.

   The recommendation of the CBT will now be forwarded to the Finance Ministry, which is expected to accept it.


Source - Staffcorner
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