The Employees' Provident Fund Organisation (EPFO) has decided to provide 8.75 per cent interest to its subscribers for the year 2013-14.
"We have decided to recommend to the government 8.75 per cent rate of interest for 2013-14 to its subscribers," Labour minister Mr Oscar Fernandes said.
The interest rate in 2012-13 was 8.5 per cent and in 2011-12, 8.25 per cent.
The trade unions had asked for a 9.5 per cent interest on provident fund. All India Trade Union Secretary and CBT member D L Sachdev said that "this rate of 8.5 per cent is less than the interest provided by banks these days, and would not be able to cover inflation"
The Central Board of Trustees, which is the apex decision-making body of the Employees' Provident Fund Organisation (EPFO), met today and approved the interest rate.
Once approved by the Central Board of Trustees of the EPFO, the decision on the interest rate requires approval of the Finance Ministry, which has to notify it. The interest is credited to the accounts of subscribers after the new rate is notified.