New Delhi: The Employees’ Provident Fund Organisation (EPFO) has decided to slash the interest rates on Provident Fund (PF) deposits to 8.55% for 2017-18 from the existing 8.65%. The decision was taken yesterday at a meeting of the Central Board of Trustees, the apex decision-making body of the EPFO and the decision will affect about five crore subscribers once it is approved by the Ministry of Finance.

The decision to slash the interest rates comes after this year’s Union Budget proposal made provisions for the Government to pay 12% of wages to the EPF contribution on behalf of new employees for initial three years.

The Budget also proposed to amend Employees Provident Fund Act to reduce contribution of women to 8% from 12% with no change in employer’s contribution, implying women employees can take home higher amount of salary with the same basic pay structure.