EPF Rates May Be Retained At 8.5%

Amidst indications of retaining 8.5 per cent interest, the EPF board will meet on Monday to decide the rate for 2006-07 and 2007-08 for its four crore subscribers.Monday''s meeting, after half a dozen such exercises failed to finalise the rate, assumes significance in the light of Labour Minister Oscar Fernandes'' statement that the government will try to retain the present rate.

Though EPF''s earnings allow a maximum of 8.25 per cent interest, the Central Board of Trustees is likely to settle for 8.5 per cent interest with the Left-backed trade unions strongly objecting to any further cut.

As the rate could not be thrashed out in the past meetings, Fernandes said efforts would be made this time to evolve a consensus so that the EPF interest is not lowered.The EPF Board at its last meeting on May 27 had decided to have a fresh look at the matter on July 2, but that meeting was later called off.While Leftist trade unions are opposing any cut in the rate from the existing 8.5 per cent, Fernandes is of the view that for 2006-07, the rate of interest would depend on the funds available with the EPF.The higher rate of interest offered by commercial banks would be taken into account for future calculations.