EPFO lowers interest rate to 8.55 per cent

New Delhi: Retirement fund body EPFO on Wednesday reduced the rate of interest on employees provident fund to 8.55 percent for it's over 6-crore subscribers for 2017-18, from 8.65 percent in the previous fiscal.

"It is difficult to evaluate about the future given the present economic scenario. We paid 8.65 per cent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 per cent for 2017-18, which will leave a surplus of Rs 586 crore," Labour Minister Santosh Gangwar told reporter after the Employees' Provident Fund Organisation's (EPFO) trustees meet.

After the CBT's decision on the interest rate, the proposal is vetted by the finance ministry. Once approved by the finance ministry, the rate of interest is credited to subscribers' account.