The Employee Provident Fund Organization board would probably keep the interest on EPF deposits worth 4.71 crore at 8.5% for the fiscal 2010-11.
It is most likely that the prime decision making body of EPF Organization, The Central Board of Trustees (CBT) will continue with the interest rate of 8.5% for the sixth consecutive year.
This interest rate has been recommended by the Finance and Investment Committee (FIC) of the EPFO and it needs the recommendation of CBT. The CBT is headed by Labour and Employment Minister Mallikarjun Kharge.
CBT would be deciding on the issue of raising the benefit of Rs. 60,000 to Rs. 1, 00, 000 under the Employees Deposit- Linked Insurance (EDLI) Scheme for EPFO subscribers in cases of death before superannuation of the employee.
It has been informed by an official from the Labour and Employment Ministry that the FIC is rigid in continuing with the same interest rate of 8.5% which would be leaving a surplus of Rs 15.26 crore.
The demand by trade unions to raise the interest rate to 8.75% has been objected by the FIC saying that if the interest rate is increased than it would result in a huge deficit in the funds of EPFO.
"Since increasing the rate to 8.75 per cent for next fiscal would result in a huge deficit of Rs 426.53 crore, the FIC had decided to pay 8.5 per cent for the sixth year in a row," as reported by sources then.
The meeting to be held might also take into consideration the issue of raising the wage ceiling from the existing Rs 6500 to Rs 15,000 to bring more employees under the EPF scheme and help them avail provident fund benefits.