Finance Ministry fixes EPF interest rate at 8.65%

The Finance Ministry is believed to have permitted the Labour Ministry to go ahead with an 8.65 per cent rate of interest on employees’ provident fund (EPF) for 2016-17, which will benefit over four crore Employees’ Provident Fund Organisation (EPFO) members.

In its communication to the Labour Ministry, the Finance Ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund. This will enable the Labour Ministry to provide 8.65 per cent rate as decided by the EPFO trustees.

According to EPFO estimates, the fund will see a surplus after providing 8.65 per cent interest rate for the last fiscal.