EPFO will not cut interest rate: govt

PTI Updated - January 20, 2018 at 12:20 AM.

Retirement fund body EPFO will not revise its interim interest rate of 8.8 per cent downward for the current financial year, Labour Minister Bandaru Dattatreya said today.

“We will not revise it (interim interest rate) downwards. The revision will be keeping in view the economic trend in the country, interest rates of various schemes as well as the 7th Pay Commission,” Dattatreya told reporters here.

When asked about the interim announcement, he said the prevailing situations need to be analysed and after that the CBT will again meet in the future to decide the interest rate.

The Minister said trade unions had demanded an interest rate of 9 per cent, but paying at that rate would have left the retirement fund body with a deficit of ₹102 crore.

Published on February 19, 2016 13:55