Pension pinch

Central Board of Trustees, fixed 8.65% as the interest on EPF deposits for FY17

The Central Board of Trustees, the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO), fixed 8.65% as the interest on EPF deposits for FY17. This is the lowest rate in the last four years and 0.15 percentage points lower than the earlier 8.80% for FY16. The labour ministry gave low income as the prime reason for lowering the interest rate. Sustaining with a higher interest rate would have forced the body’s surplus into negative for the current financial year.