Provident Fund and Employees Deposit Linked Insurance Scheme Rates Increased
Benefiting over 5 crore subscribers, Employees Provident Fund Organization has decided to increase interest rate on Provident Fund Deposits to 8.75% p.a. Interest Rate in the previous financial year (2012-13) was 8.5%.
The decision to raise interest rate was taken by the Central Board of Trustees (CBT), the apex decision making body of the Employees Provident Fund Organization (EPFO) and has been forwarded to be vetted by Finance Ministry. As soon as the ministry approves the decision, the interest would be credited to the accounts of subscribers.
EPFO also announced a 20 per cent increase on Employees Deposit Linked Insurance Scheme, 1976 as an interim measure. Under this scheme, the family of a worker can get a maximum sum assured of Rs.1,30,000 in case of his/her demise during the service period.
After 20 per cent raise, the maximum amount would now be Rs.1,56,000. CBT has also approved increasing minimum administrative charges for managing EPF Scheme, 1952 and EDLI Scheme to Rs.500 and Rs.200 per month from existing rate of Rs.5 and Rs.2, respectively.