Kharge hopeful of hike in PF interest rate being approved

Bangalore, Feb 4 (PTI) Union Labour Minister MMallikarjun Kharge today expressed hope that his ministrywould be able to persuade the Finance Ministry to approve thehike in interest rate on EPF (Employee Provident Fund) fromthe existing 8.5 per cent to 9.5 per cent.

"I hope we will be able to persuade the Finance Ministryto give its nod for the decision of the Central Board ofTrustees to increase the rate of interest on EPF from 8.5 percent to 9.5 per cent for 2010-11.I hope the Finance Ministrywill agree to it," he told reporters here.

The Labour ministry in September last recommended a hikein interest rate after Provident Fund Department accountsrevealed a surplus, but it was rejected by the FinanceMinistry on the ground that EPFO will not be able to manageand sustain such an increase.