The government has announced an interest rate of 8.7 percent for the subscribers of employees’ provident fund (EPF) for 2015-16, 10 percentage points less than the rate suggested by Central Board of Trustees (CBT).
The step has led to strong protest from trade unions.
“The CBT, at its meeting held in February 2016, had proposed an interim rate of interest at 8.8% to be credited to the accounts of EPF subscribers for 2015-16. The ministry of finance has, however, ratified an interest rate of 8.7%,” Union Labour Minister Bandaru Dattatreya said in a written reply to the Lok Sabha .
EPFO had come out 8.75 percentinterest in 2013-14 and 2014-15.
It paid 8.5 percent in 2012-13 and 8.25 percent in 2011-12
According to current practice, CBT recommends the rate of interest to be accrued to the subscribers — around five crore now — and the finance ministry approves the rate for a particular year.