Interest rate on employees' provident fund will be increased from 8.25 per cent to 8.6 per cent in the current fiscal.

Labour Minister Mallikarjun Kharge said this in the Rajya Sabha yesterday while replying to a debate on the working of the Labour Ministry.

The Employees' Provident Fund Organisation had brought down the rate of interest to 8.25 per cent for 2011-12 from 9.5 per cent provided in 2010-11.

The retirement fund body EPFO has parked in excess of 55,000 crore rupees in the Special Deposit Schemes, aimed at providing better returns to non-government provident funds and other such funds.