Interest rate on EPF deposits for year 2015-16
EPF interest rate is hiked to 8.8% for the current fiscal year (2015-16) from 8.75% of the previous year.
As posted earlier, EPFO's advisory body, Finance Audit and Investment Committee (FAIC), had recommended 8.95% interest on PF deposits for 2015-16, which was supported by trade union leaders but the CBT (Central Board of Trustees, EPFO's apex decision-making body) at its meeting on February 16 decided to provide an interim interest rate of 8.8 per cent for the fiscal. The ministry of finance has, however, ratified an interest rate of 8.7%, citing market volatility and the global economic slowdown.
However, trade unions strongly opposed this cut and threatened to go on strike following which government had to rollback their decision and increase the interest rate to 8.8%.Category: finance