Central Government Hikes EPF Interest Rate to 8.8%…
The Finance Ministry has reversed its decision and agreed to pay interest at the rate of 8.8% as per the recommendations of EPFO (Employees Provident Fund Organisation) to over five crore subscribers during 2015 – 16.
This decision was taken by the Central Government after strong protests from trade unions which insisted that the 8.8% rate recommended by the EPFO’s central board of trustees should be accepted. Last week, the finance ministry had insisted on offering 8.7%. That was the first time the ministry went against the board’s recommendation. It had argued that a lower payout would help EPFO have sufficient reserves to meet higher interest outgo on inoperative accounts. But following consultations with the Labour Ministry, Finance Ministry opted to go with the EPFO Board’s decision.
Source: The Times of India