new delhi the finance ministry has approved 87 per cent interest rate on provident fund deposits for 201516 lower than that recommended by the labour ministry as well as the rate offered in the preceding two financial years the central trade unions on monday threatened to protest against the decision which could spark a tussle between the two ministries while experts welcomed it the finance ministry through a letter written to us last week has approved 87 per cent interest rate on pf deposits for 201516 as against the recommended 88 per cent labour secretary shankar agarwal told et we have sought comments from the central provident fund commissioner following which we will write back to finance ministry on this he said the cut in interest rate comes at a time when earnings of the employees provident fund organisation epfo in 201516 could have fetched 895 per cent this is seen as a step towards bringing the rate closer to those offered by other small saving schemes the finance ministry had last month reduced interest rate on small saving schemes including public provident fund ppf scheme and kisan vikas patra to 81 per cent and 78 per cent respectively from 87 per cent in 201516 the cbt central board of trustees epfos apex decisionmaking body at its meeting held in february 2016 has proposed an interim rate of interest at 88 per cent to be credited to the accounts of employees provident fund subscribers for 201516 the ministry of finance has however ratified an interest rate of 87 per cent labour minister bandaru dattatreya on monday said in a written reply to the lok sabha epfos advisory body finance audit and investment committee had recommended that 895 per cent rate of interest was feasible as it would leave a surplus of rs 91 crore according to its estimates providing 9 per cent rate of interest would have resulted in a deficit of rs 102 crore the organisation pays interest to its subscribers on the basis of returns it generates from its investments the demand for 9 per cent rate of interest for 201516 by the representatives of the employees notwithstanding the cbt at its meeting on february 16 decided to provide an interim interest rate of 88 per cent for the fiscal the central trade unions including the rssbacked bharatiya mazdoor sangh slammed the finance ministrys decision bms strongly condemns cut in epf interest rate we will hold nationwide demonstrations at epf offices on april 27 bms general secretary vrijesh upadhyay said dl sachdeva national secretary of the cpibacked aituc said this is undue interference from ministry of finance when the epfo income justifies 89 per cent and the board has approved 88 per cent all central trade unions will protest against this unilateral move however sonu iyer tax partner at professional services firm ey said the announcement of 87 per cent interest rate on epf in a scenario where other rates like that of fd fixed deposits and ppf