Union Finance Ministry on Friday increased interest rate on Employee Provident Fund (EPF) to 8.8% from the 8.7% decided earlier.
The decision was announced on a day trade unions held protests across the country against the lower interest rate. The 8.7% interest rate for 2015-16, earlier ratified by the ministry, was lower than the 8.8% recommended by the retirement fund body EPFO. Last year the rate was 8.75%.
Trade unions had slammed the “unilateral undemocratic” action by the ministry saying it had completely ignored the unanimous decision of the tripartite body Employees Provident Fund Organisation.
It was for first time that the Finance Ministry has not given concurrence to the rate of interest on EPF as decided by the decision-making body , which is headed by labour minister Bandaru Dattatreya.
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