EPFO (Employee provident fund organization) has proposed to the government an interest rate hike of 0.25% on the PF deposits of employees. Currently, EPF returns are 8.5% p.a. The new interest rate on EPF would be 8.75% for FY 2013-14.
EPFO estimates an income of Rs. 25,048.55 crore for FY 2013-14 and after considering the interest rate hike, it will be left with surplus of Rs. 43.14 crore. It has also announced an increase in the maximum sum assured under EDLI scheme. It has been raised from Rs. 1,30,000 to Rs. 1,56,000. EPFO currently has about 5 crore subscribers.