The Hindu Business Line : Provident Fund

It has become rather customary for the Labour Ministry and the Finance Ministry to make delays in the announcement of interest rate of Employees Provident Fund every year. This year was not an exception.

The provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 cast statutory obligations on the Central Government to decide the interest rate on EPF in consultation with the Central Board of Trustees (CBT), EPF every year.

The Ministry of Labour, in spite of the strong opposition from the Ministry of Finance, has been able to keep the rate of interest at 9.5 per cent till the last year. But this time it is an open secret that it will be impossible to retain such a high rate of interest in the face of the general low-interest-rate regime the government favours.

However, with Parliamentary elections round the corner, neither the Labour Ministry nor the Finance Ministry could summon up the courage to declare the interest rate, perhaps, at a reduced rate for the year 2004-2005 as it will earn the ruling party the hatred and disappointment of millions of workers.

C. Ramesh

Keeramangalam (TN)

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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