EPFO cuts interest on PF deposits to 8.65percent for 2017

EPFO cuts interest on PF deposits to 8.65percent for 2017

New Delhi,Dec19: The Employees Provident Fund Organization (EFPO) on Monday fixed 8.65% as the interest rate on Employees Provident Fund (EPF) deposits for its over four crore subscribers for the fiscal 2017.

The retirement fund body was expected to retain 8.8% as the rate of interest on PF deposits at its trustees meeting on Monday.

The finance ministry had earlier this year decided to lower interest on EFF for 2015-16 to 8.7% from the 8.8% approved by the Central Board of Trustees (CBT) headed the labour minister.

The government had to roll back the decision and provide 8.8% rate of interest on EPF deposit for 2015-16 following protests by trade unions. As per the EPFO income projections of Rs39,084 crore for the current fiscal, providing 8.8% rate of interest on EPF deposits will leave a deficit of Rs383 crore. There would be a surplus of about Rs69.34 crore if interest rate is lowered to 8.7%.

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