New Delhi: The Employees Provident Fund Organisation (EPFO) on Monday reduced the annual rate of interest to 8.5 per cent from 9.5 per cent paid in the previous year on the fund deposits of subscribers for 2004-05. The decision affects more than three crore subscribers.

This is an interim interest rate and depending on how interest rates move in the future, it could be revised later. The reduced rate would result a deficit of Rs206 crore for the EPFO in the current fiscal year.

All the trade unions except the Congress affiliated INTUC are unhappy over the decision. The trade unions supported by the Left parties are reportedly calling for a demonstration against the cut on September 20.