EPF Interest rate increased to 8.8% from 8.7%

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New Delhi/Nagpur: The Union finance ministry on Friday agreed to increase interest rate on provident fund deposits to 8.8 per cent from the 8.7 per cent decided by it earlier.

The Central Board of Trustees (CBT) had decided 8.8 per cent interest rate, however, the finance ministry approved only 8.7 per cent 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.

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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.

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