Employees' Provident Fund Organisation (EPFO), the body responsible for Employee's Provident Fund (EPF) in India cut down its interest rate from 8.65% in 2016-17 to 8.55% from 2017-18 in its trustees meeting today.

"It is difficult to evaluate about future in view of present economic scenario. We paid 8.65 percent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 percent for 2017-18, which will leave a surplus of Rs 586 crore," Labour Minister Santosh Gangwar told PTI reporters.

The new rate will be applicable to EPFO's 6 crore subscribers for 2017-18 after the proposal is reviewed by the finance ministry.

Minister Gangwar hopes that trade unions agree to this decision and also said that EPFO had liquidated its Exchange Traded Funds (ETFs) to be able to provide the proposed 8.55% interest.

Inputs from PTI