The Finance Ministry was stubbornly opposing the EPFO decision to increase the interest rate of EPF from 8.5% to 9.5% for the year 2011-12, which is fully justified. The EPF Organisation had taken all relevant data for calculating the higher interest. But the private employers opposed it stating that they can not pay the higher interest decided by EPFO. Subsequently, the Finance Ministry also took the same stand. Since there was a stand-off between the Labour Department and the Finance Department, the matter went up to cabinet.
The cabinet has now decided approving the higher interest. Accordingly, Ministry of Labour & Employment vide No. R 11018/1/2010 SS-II dated 17th March 2011 has issued orders for calculating 9.5% interest for 2011-12 to the 4.72 crore subscribers.

The sustained efforts of the Central Trade Unions and other labour organisations have become successful. Congratulations!