EPF interest rate: Nationwide protest by trade unions today

Zee Media Bureau

New Delhi: Trade unions on Friday went on a day-long nationwide protest against Finance Ministry's decision to fix 8.7 percent interest rate for provident fund subscribers, lower than 8.8 percent decided by the EPFO.

"While condemning such arrogant anti-worker approach of the government, the central trade unions call upon the workers and the trade unions irrespective of affiliations to protest against the same by holding demonstrations, meeting, etc on April 29, 2016, throughout the country," ten central trade unions had said in a joint statement earlier on Tuesday.

The unions include Indian National Trade Union Congress, All India Trade Union Congress, Centre of Indian Trade Unions and All India United Trade Union Centre.

However, RSS-backed Bharatiya Mazdoor Sangh (BMS) has opted out of the proposed stir.

The unions strongly denounce the "unilateral reduction" in interest rate on Employees Provident Fund (EPF) from 8.8 percent to 8.7 percent, ignoring the unanimous decision of tripartite Central Board of Trustees (CBT) of EPFO, the statement added.

CBT, which is headed by the Labour Minister, is the apex decision making body of the Employees Provident Fund Organisation (EPFO).

"On February 16, 2016, the CBT of EPFO, in its meeting chaired by Labour Minister (Bandaru Dattatreya) unanimously decided the interest rate on EPF at 8.8 percent as an interim measure with an indication of increasing it further in view of availability of funds generated by EPF," it said.

But the Finance Ministry, imposed its decision to reduce the interest rate further to 8.7 per cent without even consulting the CBT, it added.

It is probably for the first time that Finance Ministry has overruled the decision of the Central Board of Trustees (CBT) on the interest rate.

With Agency Inputs