Yet another flip-flop: EPF interest rate now 8.8 pc

New Delhi: In the third change in two months, the government on Friday raised the interest rate on Employees’ Provident Fund (EPF) contributions to 8.8 per cent for 2015-16 against 8.7 per cent approved by the Finance Ministry last week.

Labour Minister Bandaru Dattatreya announced the decision to raise interest rate on a day the employee unions had called for nationwide protests against fixing interest rates lower than 8.8 per cent decided by the retirement fund body EPFO, as well as 8.75 per cent paid for the previous fiscal.

This is the third rollback on EPF. Last month, the government was forced to withdraw the Budget proposal to tax a certain portion of withdrawals. Subsequently, it withdrew tighter withdrawal norms. — PTI