The employees' provident fund will earn a higher interest rate of 8.8% for 2015-16, marginally up from the existing 8.75%. There has been demand to hike the PF interest rate to 8.90%.
"We had last time given 8.75% and this time, seeing the situation, we are declaring 8.8% for the workers," he told reporters after chairing the 211th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO).
On trade unions' demand for 8.9% interest rate, he said, if that was implemented, the 'surplus' the government will have would be Rs 285 crore. And in the case of 8.8%, the surplus will be Rs 673 crore, he explained.