Finance Minister Pranab Mukherjee has approved a 1.25 per cent cut in interest rates for Employee Provident Fund, Labour Secretary Mrutunjay Sarangi told NDTV on Thursday.
This will bring down the effective rate from 9.5 per cent to 8.25 per cent. The rate is the interest that the Employee ProvidenFund Organisation (EPFO) offers its depositors.
The rate cut comes just a day before the Finance Minister is to present Union Budget in Parliament.
The rate cut will affect about 4.7 crore workers across 5.7 lakh establishments
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