The Finance Ministry has ratified the decision of the EPFO’s Central Board of Trustees (CBT) to retain 8.75 per cent rate of interest for 2014-15 also. It was the same rate of interest for 2013-14.

This rate of interest on PF deposits would now need to be notified by the Labour Ministry as well as by the Income Tax Department. The decision would be implemented from the date of notification. The EPFO took the decision in its meeting held on 26th August 2014.

But this interest is less than demanded by the Central Trade Unions, which was 9.5%. The proposal of the government to reduce the present interest was strongly opposed by the unions and hence retaining last years interest rate.