Govt Raises EPF Interest Rate To 8.8% For 2015-16

29/04/2016 6:02 PM IST | Updated 15/07/2016 8:26 AM IST
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NEW DELHI, INDIA - MARCH 8: Finance Minister, Minister of Corporate Affairs and Minister of Information and Broadcasting Arun Jaitley talks to media person during the Parliament Budget Session on March 8, 2016 in New Delhi, India. After huge criticism, Finance Minister Arun Jaitley announced roll back of its Budget proposal of imposing a tax on Employees' Provident Fund withdrawals. (Photo by Sonu Mehta/Hindustan Times via Getty Images)

In the third roll-back in two months, the government on Friday raised the interest rate on employee 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 employee unions had called 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.

"I am happy that finance ministry has agreed to 8.8 per cent for 2015-16," he told reporters here.

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.

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