New Delhi: Government on May 31 lowered the interest rate on Employees Provident Fund (EPF) by 0.5 per cent to 9 per cent, but gave a bonus of 0.5 per cent for the current fiscal.

The bonus of 0.5 per cent has been given as part of Golden Jubilee celebrations of EPF ensuring that employees get the same 9.5 per cent return despite the rate cut.

Even with 9 per cent interest rate, the fund would have a surplus of Rs 25.08 crore, A D Nagpal, Secretary of Hind Mazdoor Sabha, said.

Central Board of Trustees of EPF would have to incur an additional liability of Rs 323 crore for the 0.5 per cent bonus to employees.

PTI