Labour Minister Bandaru Dattatreya on Thursday said the Finance Ministry had approved an interest rate of 8.65 per cent on Employees Provident Fund or EPF for 2016-17.
The ratification of the 8.65 per cent on EPF will enable the retirement fund body EPFO (Employees' Provident Fund Organisation) to credit this rate of return into the accounts of four crore subscribers. "Finance Ministry has agreed to 8.65 per cent rate of interest. Now, the communication will come. The formal discussions are over," he said.
"We will immediately issue the notification and credit the rate of interest to over four crore subscribers," he added. EPFO Members To Get Additional Benefit Up To Rs 50,000
Employees' Provident Fund Organisation trustees had approved the 8.65 per cent rate on EPF in December last year.
The Finance Ministry has been nudging the Labour Ministry to lower the EPF rate for aligning it with the rates of small savings schemes like Public Provident Fund (PPF).