The government has increased interest rates for non-governmental provident funds, gratuity and superannuation to 8 percent from existing 7.6 percent, reported The Economic Times.

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According to the report, the ministry notified this revision in interest rates on October 4.

Launched in 1975, the scheme is aimed at providing ‘better returns to non-government provident funds, superannuation and gratuity funds, surplus funds of the Life Insurance Corporation (LIC), and Employee's State Insurance Corporation, etc.

The new decision is expected to help thousands of individuals working in the private sector across the country as the investments in Government Guaranteed Securities come with a separate maximum limit of not more than 10 percent.