Union Labour Minister Bandaru Dattatreya has said that 8.65 per cent interest rate on employees’ provident fund (EPF) deposits for this financial year will soon be approved by the Finance Ministry. He also said that there was no difference opinion on this issue between the Labour Ministry and Finance Ministry and added that it is in the process and he will pursue it personally.
EPFO’s apex body, Central Board of Trustees (CBT) chaired by the Dattatreya, had approved 8.65 per cent rate of interest on EPF deposits for current fiscal on December 19 which is lowest in four years. For the FY 2015-16, the Employees’ Provident Fund Organisation had provided 8.8 per cent rate of interest to its 4 crore contributing subscribers. It also maintained 8.75 per cent for 2013-14 and 2014-15 while it was 8.5 per cent in 2012-13. EPFO will be left with a surplus of Rs 269 crore after providing 8.65 per cent interest rate for the current fiscal.
The minister’s assurance has come as relief for subscribers as the Finance Ministry has been reportedly asking the Labour Ministry to bring the EPF interest rate in alignment with other small saving schemes like PPF of the government. Earlier, the Finance Ministry had lowered interest rate on EPF for 2015-16 to 8.7 per cent from 8.8 per cent approved by the CBT but the step was retracted after protests by trade unions.