People's Democracy

CITU Demands 9.5% Interest on EPF Savings

THE Centre of Indian Trade Unions (CITU) has expressed deep concern over the disquieting reports about the Finance Ministry rejecting the 9.5 per cent interest rate for EPF savings for 2010-11. It will be noted that the 9.5 per cent rate for EPF savings was approved by the Central Board of Trustees (CBT) that s headed by the labour minister.

The CITU has regretted that instead of contributing any amount from the government exchequer for a social security scheme like the provident fund, at a time when there is unprecedented high inflation in the country, the Finance Ministry is trying to block the higher interest rate from the surplus emanating from the workers’ own contribution. This is in sharp contrast to the Finance Ministry’s absolutely passive role when Rs 1.76 lakh crore revenue was lost to the government exchequer during the sale of 2 G spectrum.

The CITU has expressed strong opposition to such intervention without any contribution from the Finance Ministry. Its apprehension is that the Finance Ministry is acting at the behest of some employers who are keen to divert the PF funds into the share market and are averse to a higher interest from the private provident fund trusts.

The CITU has urged upon the government to notify a tax free provident fund rate of 9.5 per cent without any further delay for the year 2010-11.