M A I N   N E W S

Govt slashes EPF rate to 8.25% 

New Delhi, March 15
The government today 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.

According to EPFO's income projections, a provision of 8.25 per cent interest for 2011-12 would leave a deficit of Rs 24 lakh. — PTI