Don’t cut EPFO interest rate, says Congress

Raising the issue in the Lok Sabha during zero hour, Congress’s Manickam Tagore said the move if implemented will affect 60 million non-government employees in the country.

Congress leader Manickam Tagore on Monday urged the government not to reduce the 8.65% interest rate offered in 2018-19 by the Employee Provident Fund Organisation (EPFO), the government-owned pension fund manager.

The labour ministry had rejected the finance ministry’s request, which HT reported on July 19.(PTI)

Raising the issue in the Lok Sabha during zero hour, Tagore said the move if implemented will affect 60 million non-government employees in the country.

Tagore, who represents Virudhunagar Lok Sabha constituency in Tamil Nadu, also referred to a finance ministry letter to the labour ministry to review its decision to offer 8.65% interest rate on two grounds; one pertained to the EPFO’s decision to invest in financially troubled Infrastructure Leasing & Financial Services (IL&FS) group companies; the other was appropriation of surplus of the previous year.

The labour ministry had rejected the finance ministry’s request, which HT reported on July 19.

The labour ministry was of the view that EPFO has sufficient surplus of over ₹3,150 crore, mainly earned from investments in exchange traded funds (ETFs).

Tagore urged the finance ministry not to push its proposal as it would hit mainly the professionals.