About 4 crore subscribers of India’s pension fund will get an interest of 8.65 percent on their provident fund deposits for the financial year 2016-17, as decided by trustees of the Employees' Provident Fund Organisation's (EPFO) trustees in December last year.
Labour Minister Bandaru Dattatreya’s statement on Thursday laid to rest apprehensions among formal sector workers that they would get an interest rate lower rate the 8.65 percent approved by
"We will immediately issue the notification and credit the rate of interest to over four crore subscribers," he said.
The Finance Ministry has been nudging the Labour Ministry to lower the EPF rate for aligning it with the rates of small savings schemes like PPF.
The minister also said that the Bill to amend payment of gratuity Act in order to double the ceiling of tax-free gratuity to Rs 20 lakh, would soon be placed before the Union Cabinet for approval.