Raises interest rate to 8.8% for this year, but advises labour ministry to create reserve fund In a third flip- flop, the government has decided to reverse its earlier decision of reducing the interest rate on Employees’ Provident Fund deposits for 2015- 16 and instead keep it at 8.8 per cent, in line with the stand of the Central Board of Trustees ( CBT) of the EPF Organisation ( EPFO). The labour ministry had tried to persuade its finance counterpart to give in and the consultations worked, said labour minister Bandaru Dattatreya. The CBT had recommended 8.8 per cent in February; on Monday, the minister had informed the Lok Sabha that the finance ministry was approving only 8.7 per cent —a CBT decision has to be ratified by the latter on this issue. It was probably the first such occasion when the finance ministry had so disagreed. There have been other retreats in recent days on EPF decisions. Such as on the earlier decision to tax 60 per cent of PF money on withdrawal and also o