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Wednesday, July 30, 2014

Government has declared 8.75% interest on Employees’ Provident Fund (EPF)

Government has declared 8.75% interest on Employees’ Provident Fund (EPF)


Press Information Bureau,
Government of India
Ministry of Labour & Employment
30-July, 2014 16:25 IST


Interest Rate on EPF 

      The Minister of State for Mines, Steel and Labour and Employment, Shri Vishnu Deo Sai has said that the government has declared 8.75% interest on Employees’ Provident Fund (EPF) for the year 2013-14. 

In a written reply in the Lok Sabha today, Shri Vishnu Deo Sai has said that return on EPFO fund cannot be compared with return on other Pension Schemes like New Pension Scheme (NPS). The declaration of the return on NPS is on the basis of the accounting policy prescribed by NPS which allows the Net Assets Value (NAV) to be declared
on the basis of current market value of the investments, while EPFO follows the cost value of the investment for accounting its investment and return is declared on the basis of actual receipt of interest on the investments. The return on EPFO investments is fixed whereas the return on NPS is not fixed and fluctuates on daily basis depending on the prevailing market conditions.

The Minister said that presently the funds of EPFO are invested as per the pattern of investment notified by the Government in November, 2013 wherein only investments in corporate debt and Government bonds are allowed. There is no provision for investments in equities. 



NSK/NN
(Release ID :107600)

Source: PIB

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