NEW DELHI: In a move expected to benefit over 5 crore people, the government on Thursday announced that the interest rate on employees' provident fund will be increased to 8.6% for the current fiscal. The Employees' Provident Fund Organization ( EPFO) had in March brought the interest down to 8.25% for 2011-2012 from 9.5% in 2010-2011.
The cut in interest rate had led to vociferous protests from political parties, trade unions and employees who depend on the scheme for their retirement benefits. "The rates were brought down due to lower income (on investment in Special Deposit Schemes).There is no question of minimum or maximum interest rates. We distribute it as per our revenue. Next time, it will be 8.6%," labour minister Mallikarju Kharge said in the Rajya Sabha.
The cut in interest rate had led to vociferous protests from political parties, trade unions and employees who depend on the scheme for their retirement benefits. "The rates were brought down due to lower income (on investment in Special Deposit Schemes).There is no question of minimum or maximum interest rates. We distribute it as per our revenue. Next time, it will be 8.6%," labour minister Mallikarju Kharge said in the Rajya Sabha.
