News Desk: Breaking News! The Central government on Wednesday came with an announcement to hike the interest rate on Employees' Provident Fund (EPF) by 1 percent to 9.5 percent for this fiscal year.

The decision was made after the meeting between Union Labour Minister Mallikarjun Kharge and the Central Board of Trustees (CBT), the policy making body of the Employees Provident Fund Organisation (EPFO).

As per the announcement, the interest rate will increase returns on investments for over 4.7 crore subscribers of the EPF scheme.

The EPF rate had witnessed its last change in 2005-06 and set to 8.5 percent. However, the EPFO had offered 12 percent as a rate of return between 1989 and 2000. The hike looks lower than the 10.5 percent level that trade union employees have been demanding.

According to analysts, the increased provident fund rate will not be sufficient for the middle class, who are worst affected in the inflation.  The move will make a big impact on the books of India Inc.

Companies of provident fund trusts are suggested to match the rate announced by the government to make a rapport with the government.

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