According to a report, the Finance Ministry on Monday approved the 8.7 percent interest rate on EPF deposits (Employee Provident Fund) for the financial year 2015-16.
The announcement was made by the Labour Minister Bandaru Dattatreya. Notably, on March 18th the government had slashed interest rates payable on small savings , which included PPF and Kisan Patra in a bid to align them closer to market rates.
8.7 Percent interest rate on EPF
This decision of government will affect more than 4 million employees. Earlier the interest rate was 8.75 percent and was being advocated to make it 8.8 percent.
Notably, since 2010 EPF rates have been continuously cut. It was 9.5 percent in year 2010-11.