Press Information Bureau

Government of India

Ministry of Labour & Employment

12-December-2011 17:33 IST

The Provident Fund handled by the Employees’ Provident Fund Organisation is known as Employees’ Provident Fund (EPF). Rate of interest on Employees’ Provident Fund for every year is recommended by the Central Board of Trustees, Employees’ Provident Fund on the basis of estimated interest income available and estimated liability on interest payment of the particular year. Assessment on above lines is made every year by the Central Board of Trustees, Employees’ Provident Fund before recommending rate of interest to the Government of India.

Actual details of expenditure for the year 2011-12 would be arrived only after updation of all the annual accounts of 2010-11.

Rate of interest for the year 2011-12 is to be recommended by the Central Board of Trustees, Employees’ Provident Fund based on both estimated interest income and estimated liability on interest payment to the Provident Fund members.

This information was given by the Minister of Labour and Employment Shri Mallikarjun Kharge in reply in reply to a written question in the Lok Sabha today.

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Interest rate recommendation process for provident fund depends on estimated interest income and liability assessments. Rate-setting for the Employees' Provident Fund interest is an annual administrative process in which the governing board assesses estimated interest income against estimated liability on interest payments and, after updating annual accounts, recommends a rate to the government based on that comparative assessment.