PF rate hiked to 8.65%

The Employees’ Provident Fund Organisation (EPFO) board on Thursday recommended an increase in interest rate to 8.65% in the current financial year, compared to last year’s 8.55%, a move that will marginally improve the returns for six crore subscribers.

Labour secretary Heeralal Samariya said even at this level, the EPFO will have a surplus of around Rs 151 crore. The move, which will have to be endorsed by the finance ministry, comes at a time when interest rates are falling. A higher interest rate may limit the ability of banks to lower deposit rates to remain competitive.