Dear HR Fraternity,
This is for your information as Employees Provident Fund Organisation (EPFO) to reduce interest rate on provident fund deposits to 8.65% for 2016-17 from the current 8.8%. "Taking into account relevant factors, the Central Board (of Trustees) decided to recommend 8.65% interest to its subscribers for 2016-17. Roughly 17 crore subscribers' accounts will be updated with this interest rate upon acceptance by the government," labour ministry officials said after the 215th meet of the Central Board of Trustees (CBT), the EPFO's decision making body. The rates need to be notified by the labour ministry, which will look at the projected earnings and expenditure of the EPFO.
Despite this cut, the returns will be higher than what the government pays on small savings schemes. In October this year, the government had lowered interest on many small savings schemes by 0.1 percentage points. The popular Public Provident Fund (PPF) now fetches only 8%.
From India, Delhi
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