Government has approved a hike in interest rate of PF deposits handled by EPFO. The new interest rate will be 8.75% p.a as opposed to 8.5% p.a for the previous year.
EPFO has declared an estimated income of Rs. 25,048 crore. The payment of 8.75% p.a. interest for the deposits of over 5 crore subscribers would need Rs. 25,005 crore. There would still be a surplus of Rs. 43 crore.