The Finance Ministry brought cheer to the formal sector employees as it has increased the interest on Employees' Provident Fund (EPF) to 8.65 percent for the 2018-19. The interest rate on EPF was hiked from 8.55 percent provided in 2017-18.

According to reports, the Finance Ministry has approved the decision taken by the retirement fund body of the EPFO, which will likely to benefit more than 6 crore formal sector workers.

There would be a surplus of Rs. 151.67 crore to provide 8.65 percent rate of interest for 2018-19, informed sources of EPFO.