According to a rough estimate, 70 to 75 per cent of EPFO deposits are invested in special deposit schemes (SDS) which have been earning interest rate of 8 per cent since 2002. The interest rate for SDS was reduced from 12 per cent to 8 per cent in 2002. Despite repeated demands of employees’ unions, the government neither changed the pattern of its investment nor increased interest rates for SDS. Hence, the government was exploring the idea of reducing interest rate to 8.25 per cent to maintain surplus in EPFO accounts.
Rs 10,552 crore The payment at 8.25 per cent
Rs 10,692 crore The payment at 8.5 per cent
Rs 140 crore The resultant deficit
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