Bowing to protests from trade unions, the Centre on Friday announced an interest rate of 8.8 per cent on Provident Fund deposits for 2015-16 agai-nst the Finance Ministry’s earlier recommendation of 8.7 per cent. This is the third time in two months that the Centre has withdrawn proposals relating to PF — ranging from tax and curbs on withdrawals, to a higher rate fixed by the Finance Ministry.
Announcing the decision here, Labour Minister Bandaru Dattatreya said the Finance Minister had agreed for 8.8 per cent interest to be given for EPF workers for 2015-16. He said the Central Board of Trustees of the EPFO in February had recommended 8.8 per cent as ‘interim’ rate, which would leave a surplus of ₹673.85 crore. Finance Ministry sources said the Labour Ministry clarified that earnings of the EPFO in 2014-15 exceeded estimates and this was the basis of the 8.8 per cent rate recommended.