- Central Board of Trustees of Employees Provident Fund Organization has decided to recommend PF Interest Rate of 8.65% for its subscribers for the Financial Year 2016-17.
- Every year the rates of interest on PF accumulations in members’ accounts are reviewed by the Employees Provident Fund Organization. A declaration is made after its Central Board of Trustee’s meet, which reviews the revenue generation from the investments made by the Employees Provident Fund Organization and the prevailing rates of interest on saving schemes. The Central Board of Trustee is considered as the apex decision-making body of Employees Provident Fund Organization which decides on Employees Provident Fund interest rate, whereas the finance ministry is merely expected to approve these rates as a matter of protocol.
- The commissioner shall credit interest to the account of each member at rates defined by the Central Government in consultation with the Central Board.
- Interest shall be credited to the member’s account on monthly running balances with effect from the last day of each year in the following manner:
- On the credit amount of a member on the last day of the preceding year, less any sums withdrawn during the current year—interest for twelve months;
- On sums withdrawn during the current year— interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal;
- On all the sums credited to the member’s account after the last day of the preceding year—interest from the 1st day of the month succeeding the month of credit to the end of the current year;
- The total amount of interest shall be rounded to the nearest whole rupee (fifty paisa counting as the next higher rupee)
- In the case of a claim for the refund, interest shall be payable up to the end of the month preceding the date on which the final payment is authorized, irrespective of the date of receipt of the claim from the claimant concerned;
Provided that interest up to and for the current month shall be payable on the claims which are authorized on or after the 25th day of a particular month along with actual payment after the end of the current month;
Provided further that the rate of interest to be allowed on claims for refund for the broken currency period shall be the rate fixed for the financial year in which the refund is authorized;
Provided also that the rate of interest to be allowed on claims for refund for the broken currency period shall be the last declared rate on Employees’ Provident Fund and if the rate declared for any current year happens to be less than the previous year’s declared rate, then it would accrue as bonus to the outgoing members and it shall be incorporated into calculation for deriving the current year’s rate of interest at the end of the year and the claims settled under this proviso shall be final.
- Interest shall not be credited to the account of a member if he/she informs the commissioner in writing that he/she does not wish to receive it. If, however, the member subsequently asks for interest, it shall be credited to his account with effect from the first day of the period of currency in which he makes a request.
- Interest shall not be credited to the account of a member from the date on which it has become an Inoperative Account.