People's Democracy

CITU Denounces EPF Rate Reduction

THE Central of India Trade Unions (CITU) has strongly denounced the government’s unilateral decision, in nexus with the employers, to reduce the interest rate on Employees Provident Fund (EPF) from 9.5 to 8.25 per cent for the year 2011-12, ignoring the unanimous demand of all central trade unions to at least maintain the existing rate of interest. The demand was reiterated time and again by trade union representatives in the meetings of the Central Board of Trustees (CBT).

It is shocking that while the interest rate for banks and financial institutions has been raised several times during the span of last more than one year in order to address the inflationary situation, the same is being denied to more than five crore workers covered under the EPF. Unlike other deposits including term deposits and fixed deposits in banks and financial institutions, the provident fund of workers is a social security fund which is a longest term recurring fixed deposit, and this fund remains with the government continuously for long twenty-five to thirty years. Thus this fund deserves a much higher rate of interest than the usual fixed deposits with the banks and financial institutions.

The CITU has demanded that the government must immediately rescind its decision and restore the existing rate of interest of EPF for the year 2011-12.

The CITU has urged upon all its affiliated unions to organise massive protest demonstrations before the offices of the Regional Provident Fund Commissioner (RPFC) against this anti-worker decision of the government.