People's Democracy

TUs Oppose Reduction in EPF Interest Rate

THE central trade union organisations, viz the BMS, INTUC, AITUC, HMS, CITU, AIUTUC, AICCTU, UTUC, TUCC and LPF, have unanimously opposed the government’s proposal to reduce the interest rate on Employees Provident Fund (EPF) for the year 2011-12.

It may be noted that in the meeting of the Central Board of Trustees that manages the Employees Provident Fund Organisation (EPFO), held on December 23, at New Delhi, the government proposed to reduce the interest rate on employees provident fund from 9.5 to 8.25 per cent. But the workers’ representatives unanimously opposed the proposal and stated that any reduction in interest rate on the life-time savings of the workers in provident fund was totally unjust when the government has itself been consistently raising the interest rate through the RBI during the span of more than one year as part of its monetary policy. The workers’ representatives therefore termed the proposal as unacceptable. They insisted that the interest rate on EPF should be maintained at 9.5 per cent at the least.

The matter has not yet been finalised and the labour ministry has decided to forward the opinion of the trade unions to the finance ministry.