Government makes a u-turn on EPF, agrees to 8.8 per cent interest rate

NEW DELHI, April 29: In a major climbdown after persistent pressure from the trade unions and political parties, the government on Friday increased interest rate on employees provident fund (EPF) deposits to 8.8 percent for 2015-16 from 8.70 per cent as it had announced earlier. “I am happy to tell you that the EPF rate has been increased to 8.8 per cent,” Labour Minister Bandaru Dattatreya told reporters here. The provident fund rate was 8.75 per cent in 2014-15 and the Central Board of Trustees (CBT) had recommended to make it 8.8 per cent for this fiscal. However, the fince ministry had rejected the recommendation and had approved only 8.70 per cent interest, citing lower earnings. Most trade unions had protested the decision and the issue was also raised by political parties both in parliament and outside. Trade unionist and Communist Party of India-Marxist MP Tapan Kumar Sen had also raised it in the Rajya Sabha. Trade unions had threatened to intensify agitation from September if the government did not comply with the demand of higher EPF interest rates. (IANS)