8.65% interest on employees' provident fund for FY17: Dattatreya
About 4 crore subscribers of EPFO will get 8.65 per cent interest on provident fund deposits for 2016-17, as decided by the organisation's trustees in December, Labour Minister Bandaru Dattatreya said on Thursday. The comments follow reports suggesting that the Finance Ministry is nudging the Labour Ministry to lower the EPF interest rate by up to 50 basis points. "It is not like that. The CBT (EPFO trustees) had decided to give 8.65 percent. Our ministry keeps on discussing with Finance Ministry. We would have a surplus of Rs 158 crore on providing 8.65 per cent," Dattatreya said on being asked whether the Finance Ministry is making a case for lowering the interest rate. "If need be, I will talk to them (Finance Ministry). I have requested them to approve 8.65 percent. In any case this amount (interest income) will be given to workers. But how and when it will be provided, this is the question," he added.
The EPFP apex decision-making body the Central Board of Trustees (CBT) had decided to provide 8.65 per cent rate of interest on EPF deposits last December. As per the practice, the board's decision is concurred by the Finance Ministry after evaluating whether the EPFO would be able to provide the rate approved by trustees through its own income or not.