It has been declared by EPFO that interest on provident funds have been dropped from 8.8 percent to 8.65 percent for the present financial year 2016-2017 hence citing lower surplus. The decision was taken after a thorough discussion with all investors was what Dattatreya, CBT chairman had stated. He also added that albeit giving lesser interest rate, a surplus of Rs 269 crores is what the economy has.
In 2016-2017 when the interest rate was finalized, the EPFO income along with the surplus almost went up to more than thousand crores while this year it was only Rs 410 crores which is comparatively much lesser. Reducing the interest by 0.15 percent, the surplus has come down whereas if extra interest rate was declared this year the surplus for next year would have been less again.
Publicizing the amendment in interest rate CBT Chairman Dattatreya added that despite the fact that the total financial records in the EPFO is 17.85 crore, the trust’s quantity on the financial year ending of 2016 is Rs 7.48 lakh crore. He explained that regardless of the reduction the EPF paid the maximum rate amongst others such as the PPF where the interest rate is 8.1 per cent; and also GPF wherein the interest is 8 per cent and PO term bonds that begin from 7.10 per cent per annum. He further elaborated that the total situation where interest rates are coming down but workers are being provided with highest interests which surely shows that Indian Ministry is committed to safeguard the employees’ interest.
A campaign is being planned which will pay attention on the larger unorganized segment which constitutes 92 per cent and will embark on a route which meets the twin purposes of aggregating the employment of new employees, thus prolonging societal safety aids to all staffs and decrease lawsuit targets of 50 lakh labors has been fixed in the main stage.