EPF deposit rate likely to remain 8.8 per cent

“The Employees Provident Fund Organisation’s apex decision making body, the Central Board of Trustees (CBT), may decide to retain 8.8 per cent rate of interest on EPF for the current fiscal Today in its meeting in Bengaluru,” said a source. 

“Although providing 8.8 per cent rate of interest for the current fiscal will leave a deficit of Rs 383 crore, the body wants to utilise about Rs 409 crore surplus with it, which accrued after providing 8.8 per cent rate of interest for 2015-16,” the source added.  He further said, “Labour Ministry top brass has been pursuing Finance Ministry higher ups to convince them for retaining 8.8 per cent rate for this fiscal to avoid any embarrassment.” 

The Finance Ministry had earlier this year decided to lower interest on EFF for 2015-16 to 8.7 per cent from the 8.8 per cent approved by the CBT headed by the Labour Minister. The government had to roll back the decision following protests by trade unions.