A day before Budget, EPF rate cut from 9.5% to 8.25% for 2011-12

Government on Thursday slashed interest rate on deposits in Employees Provident Fund from 9.5 per cent to 8.25 per cent for 2011-12 affecting over 4.7 crore subscribers.

This cut was proposed by the Finance Ministry and a notification was issued by the Labour Ministry, official sources said.  

The Employees' Provident Fund Organisation (EPFO) had provided 9.5 per cent interest rate to its subscribers for 2010-11 after it found Rs 1,731 crore surplus in its books of account.  

The Labour Ministry had recommended 8.6 per cent rate of interest for this fiscal on provident fund deposits to EPFO subscribers.