Employees’ provident fund (EPF) is a very important thing in every employee’s life. The government of India has always felt its importance and enacted tougher laws in order to enable every employee to get it in time. The good news is the government of India has increased the rate of interest for provident fund 8.75%. This will benefit almost 50 billion EPF account holders countrywide. Once it is approved by the ministry of finance, the revised rates will applicable for all. This step by the government is considered important for the future necessities of the employees. This will be applicable for the year 2013-14.
Broad features of Provident Fund interest rate
- Earlier the rate of interest was 8.50%. The government of India has made up its mind to increase it by .25%.
- The central board of trustees (CBT), which makes the decision for the EPF has decided to enhance the rate of interest because most of the labor trade organizations had asked for this due to excess inflation in the recent years.
- Over the years, the number of EPF holders has gone up by leaps and bounds and the government has surplus money from their contributions to PF. Therefore, it has become easier for the government to implement such a step.
- To add to all above, earnings from EPF are exempt from any type of tax deductions. This comes under ‘EEE’ meaning ‘exempt,exempt,exempt’ – complete exemption from any type of tax deduction.