EPF to fetch only 8.25 per cent in 2011-12

The government has cut the interest rate on EPF savings for 2011-12 to 8.25%.

The EPFO is the only formal social security scheme for workers and employees in the country. Workers earning up to Rs 6,500 per month, in companies with over 20 employees, are statutorily covered under the scheme while those earning more can join it voluntarily. Twelve per cent of an employee's monthly basic salary with a matching contribution from his employer is remitted and accumulated in this fund till retirement.