Employees have something to cheer about as the Labour Minister Bandaru Dattatreya said that the Finance Ministry has approved 8.65 percent interest rate on EPF for 2016-17.
The ratification of the 8.65 percent on EPF will enable the retirement fund body EPFO to credit this rate of return into the accounts of four crore subscribers.
“Finance Ministry has agreed to 8.65 percent rate of interest. Now, the communication will come. The formal discussions are over,” the minister said.
He further added, “We will immediately issue the notification and credit the rate of interest to over four crore subscribers.”
The Employees’ Provident Fund Organisation trustees had approved 8.65 percent 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 PPF.