Blow to govt employees: 0.1% rate cut in provident fund deposits
New Delhi: In a blow to government employees, the Employees Provident Fund Organisation (EPFO) on Wednesday decided to lower the interest rate on provident fund deposits to 8.55 per cent from the existing 8.65 per cent.
The rate cut decision for the fiscal 2017-18 was taken at the meeting of the Central Board of Trustees of the EPFO, sources said.
In the last fiscal, the EPFO had cut the rate to 8.65 per cent from 8.8 per cent in 2015-16.
The latest rate cut comes amid reports that the EPFO sold a portion of its investments in the exchange-traded funds (ETF) worth Rs 2,886 crore earlier this month. That had given rise to hopes that the retirement body, which has some five crore members, will retain the interest rate.