The union labour minister Bandaru Dattatreya promises 8.65% of interest rate on PF deposits for the financial year 2016-2017. Earlier it was 8.80% for the financial year 2015-2016. When compared to previous interest rate on PF this is 0.15% less. The central government of India actually planned to reduce the interest rates to less than 8.65%, but Dattatreya promises that the new interest rate will be 8.65%. So the new provident fund interest rate 2017 will be 8.65%.
New Provident Fund Interest Rate 2017 Will Be 8.65%
Once central government approves this then nearly 17 crores EPF subscribers accounts will be updated with this new PF interest rate of 8.65%. EPF subscribers are not very happy with this decision. Earlier the Employee Provident Fund Organization has contributed a 8.80% of interest on PF deposits. But now this percentage was decreased.
Recently Employee Provident Fund Organization (EPFO) is taking so many good initiatives like deduction of PF administration charges from 0.85 % to 0.65% and also introducing new EPF composite claim forms and introducing new unified EPF portal etc. Recently Employee Provident Organization has also providing group housing scheme for EPF subscribers. All the decisions taken by central government of India in recent times are very friendly to EPF subscribers except this reduction of new provident fund interest rate 2017 i.e 8.65%.
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Generally EPFO is a social security scheme for poor and middle class employees whose monthly basic + DA is less than 15000 Rs. When the interest rates are high then it will be more beneficial to these kind of lower middle class employees. Recently EPFO trying to bring more subscribers under Employee Provident Fund Scheme. But the government of India is not taking any decisions to increase the interest rates of provident fund interest rate. Do share your opinions on new provident fund interest rate 2017.