The Hindu Business Line : PM to look into EPF interest rate issue

THE Prime Minister, Dr Manmohan Singh, today said that he would discuss with the Labour Ministry and officials on what could be done about the 8.5 per cent interest rate announced for the Employees Provident Fund (EPF) for the current year.

Responding to the demand for increasing the interest rate on EPF deposits, which was raised by almost all trade union leaders at the National Labour Conference today, Dr Singh said that he would look into the matter but everything had to be done within Employees Provident Fund Organisation's (EPFO) own resources.

He also made it clear that the Government would not step in with support for the EPFO for paying provident fund subscribers an interest that was not affordable by the organisation itself.

Acknowledging that the interest rate cut would "hurt those who are affected," he said: "I will discuss it with the Labour Ministry and the officials on what can be done within the resources of the EPFO."

The Central Board of Trustees (CBT) of the EPFO had decided on an 8.5 per cent interest for the current fiscal on Wednesday.

After that, trade union representatives in the CBT had announced that they would take up the issue with the Prime Minister during the national conference.

The issue has also rocked Parliament for the last two days, with the Left parties voicing serious concern over the rate cut.

Later, the Opposition parties joined in to demand restoration of the interest rate to at least last year's level of 9.5 per cent.

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