EPF rates reduced to 11 per cent

EPF rates reduced to 11 per cent
AGENCIES

JUNE 30: Rates of Employees Provident Fund (EPF) has been brought down to 11 per cent from 12 per cent with effect from April 1, 2000, official sources said on Friday.

Labour ministry sources said the reduction was in view of finance ministry (FM) rejecting the recommendation of the Central Board of Trustees (CBT) of the EPF to continue the present interest rate of 12 per cent for the current fiscal.

Labour ministry had proposed new rate of interest on EPF from July 1, 2000, but that was not agreed to by the FM, sources said adding that the 12 per cent rate would, however, be allowed in cases that have been settled.

The CBT at its 53rd meeting on April 25 had said it would review the issue while considering interest rates for 2001-2002 in view of the recent one per cent cut in the rate of Special Deposit Scheme (SDS). About 81 per cent of the total EPF holdings are put in the SDS account.