EPF rate cut from 9.5 to 8.25% | business | Hindustan Times
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EPF rate cut from 9.5 to 8.25%

Just ahead of the general budget, the UPA government slashed the interest on the Employees’ Provident Fund (EPF) from 9.5% for 2010-11 to 8.25% for 2011-12. The circular on the single-largest EPF rate cut in a decade came on Wednesday evening.

business Updated: Mar 16, 2012 02:41 IST

Just ahead of the general budget, the UPA government slashed the interest on the Employees’ Provident Fund (EPF) from 9.5% for 2010-11 to 8.25% for 2011-12. The circular on the single-largest EPF rate cut in a decade came on Wednesday evening.

The trade union representatives in the EPFO board had strongly objected to any cut in the interest rate, citing inflation and other reasons.

“This is war on the workers. We are consulting other opposition parties and will raise the issue in Parliament on Friday,” CPI leader Gurudas Dasgupta said.

The EPFO had provided 9.5% interest rate to its subscribers for 2010-11 after it found Rs 1,731 crore surplus in its books of account. The labour ministry had recommended 8.6% rate of interest for this fiscal on provident fund deposits to EPFO subscribers.

The decision came under attack from Hind Mazadoor Sabha secretary AD Nagpal, who is also an EPFO trustee. “We will oppose it at the next meeting of the Central Board of Trustees,” he said.

(With PTI inputs)