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EPF Interest rate increased to 8.8%

Union finance ministry has agreed to increase interest rate on provident fund deposits from existing 8.7

Policy Pulse
Publish Date: Apr 29 2016 4:41PM | Updated Date: Apr 29 2016 5:54PM

EPF Interest rate increased to 8.8%
Union finance ministry agreed to increase interest rate on provident fund (PF) deposits to 8.8 % from the existing 8.7%, on Friday.
 
Central Board of Trustees (CBT) had decided 8.8% interest rate, however, the finance ministry approved only 8.7 % interest on PF deposits citing lower earnings.
 
Several Central trade unions had strongly protested the finance ministry's move that would have affected over 5 crore subscribers of retirement body EPFO.
 
The Union labour ministry was pushing for 8.8 per cent interest rate. Union labour minister Bandaru Dattatreya had justified his ministry's decision to declare an 8.8% return on EPF savings.