People's Democracy

Raise GPF Interest Rate: AISGEF

The All India State Government Employees’ Federation (AISGEF) has demanded the central government to immediately consider the issue of raising the interest rate of General Provident Fund (GPF), which has been reduced to 8 per cent from a high of 12 per cent. It wanted the interest rate to be restored to at least the present level of EPF i.e. 9.5 per cent and warned that it will be gross injustice and discrimination between the two categories of workers if it is not done so.

AISGEF general secretary Sukomal Sen in a letter to the prime minister, Dr Manmohan Singh on February 3 made this demand. He sent a copy to union finance minister and all trade unions on this issue. He expressed dissatisfaction at the government’s decision to raise interest rate on EPF by a mere percentage point – from 8.5 per cent to 9.5 per cent ignoring the demand of the trade unions to raise it to a much higher level.

Sen pointed out that more than one crore of government employees, both under the centre and the states as well as teachers, come under the purview of GPF and that the government has not at all considered their case along with those coming under EPF, though both categories of workers are equal sufferers. He recalled that the AISGEF had written to the union finance minister as back as on August 30, 2004 seeking consideration of the demand for raising the interest rate of GPF also. “Now most sadly this has been totally ignored much to the discontent of one crore government employees of the country”, he stated.

In a separate letter to the union finance minister, the AISGEF general secretary also raised the issue of raising the rate of interest of small savings, particularly postal small savings, as it was the only safe option for workers, employees and other low-earning people to deposit their hard-earned savings. He termed the UPA government’s  announcement of 9  per cent interest rate for deposits of the senior citizens as “highly deceptive” as it had no bonus and carried a number of negative conditionalities. He demanded that interest rates of small savings be raised adequately so that poorer sections of the people can get some relief and this will be in consonance with the commitment of the UPA government in their CMP. (INN)