Is It True That the PF Interest Rate Dropped to 8.5%? What Could Be the Reason?

One of my colleagues said that the PF annual interest rate has dropped from 9.5% to 8.5%. Is this true? Please update me if anyone knows about this. Also, let me know what the root causes are for reducing the interest rate to 8.5%.

Thank you.

Yes, the EPF interest rate has been reduced from 9.5% to 8.5% for the year 2011-2012.

Regards,
Sandhya

Can I know what the exact PF rate is from the employer's side and the employee's side? My company mentioned 13.61% as the employer's contribution in the salary annexure. Can I know the exact percentage for the same?

Regards,
Nikita

The actual PF interest that has been paid is 8.5% on a yearly basis. In the last year, i.e., 2010-2011, the PF department paid 1% extra. Instead of 8.5%, they paid 9.5%, having an excess amount with them. For the fiscal year 2011-2012, instead of paying 8.5%, they are paying an interest rate of 8.25%. Please refer to the notification attached by Mr. Kennady.

Regards,
Vinod Kumar

EPFO Reduces Return on Statutory Savings

With the Union Budget 2012-2013, the Employees Provident Fund Organisation (EPFO) has reduced the return on statutory savings to 8.25% from 9.5% for this fiscal year.

Regards,
Harsh