Employee Provident Fund (EPF) interest rate increased to 8.8 % from 8.7 %.
Minister of Finance Arun Jaitley, has decided to rollback the drop in Employee Provident Fund (EPF) corpus. The ministry has decided to increase the interest rate from 8.7 per cent to 8.8. The decision was taken after the Central Board of Trustees (CBT) of Employee Provident Fund Organization (EPFO) asserted pressure on Centre to rollback the drop in interest rate.Finance Ministry had earlier claimed that the EPF earnings in last year was not sufficient to even pay the amount at an interest rate of 8.7 per cent. However, CBT contradicted the claims of the government saying, “The actual surplus amount for 2015-16 will in fact be even higher. A surplus corplus will remain even if the interest rate remains 8.8 per cent.”
“If the government had paid back at an interest rate of 8.95 per cent, an amount of Rs 91.40 crores would have remained in the surplus corpus. If the rates are 8.8 per cent, the surplus left would Rs 673.85 crore. Only a high interest rate such as 9 per cent would had resulted in a deficit of around Rs 102.5 crores,” said EPFO member Brajesh Upadhyay, who is general secretary of Bharatiya Mazdoor Sangh.