The government announced an 8.7 per cent return on Employees’ Provident Fund deposits for 2015-16, evoking protests from trade unions.
The rate approved by the Finance Ministry last week is lower than the 8.75 per cent interest rate paid on EPF balances in 2014-15 and less than the 8.8 per cent announced by the Labour Minister Bandaru Dattatreya earlier.
The Finance Ministry has raised objections to the 8.8 per cent rate arguing it was out of sync with the lower interest rate-regime introduced on small saving schemes like Public Provident Fund from April 1 this year, according to documents reviewed by The Hindu .
Interest rates on EPF for 2015-16 has been lowered to 8.7 per cent in order to keep adequate surplus reserves with EPFO and looking at “the present market scenario of an overall environment of falling interest rates,” according to a Finance Ministry missive to the Labour Ministry.
“It is undue interference on part of Finance Ministry. We condemn this and all central trade unions will meet on Tuesday to decide on the next course of action,” All India Trade Union Congress general-secretary DL Sachdeva said.
Terming the move “injustice to workers”, RSS-affiliated Bharatiya Mazdoor Sangh said that EPFO’s finance investment audit committee was in favour of giving 8.95 per cent interest rates, leaving behind a surplus of Rs 91 crore.
The BMS will hold nationwide demonstrations outside EPFO offices on April 27 to protest the interest rate cut.
