Central Government decides to cut interest rate of EPF to 8.7 % from 8.75%…
The Centre has decided to lower the interest of Employees Provident Fund Subscribers to 8.7% during 2015-16, compared to 8.75% a year ago. The rate is lower than the 8.8% recommended by the EPF Organisations Board, and has triggered opposition from unions, including Bharathiya Mazdoor Sangh (BMS) which has announced nationwide protest on Wednesday. The EPFO finance committee had originally recommended an interest rate of 8.95% for 2015-16 but the board headed by the Labour Minister settled for 8.8% despite protest from the trade union representatives.
Meanwhile, the Finance Ministry, which notified the rates, defended its move, saying the lower payout was essential as the EPFO had decided to pay interest on inactive accounts from April. But Unions slammed the finance ministry’s decision, saying payment of interest on inactive accounts was to be made from the current financial year while the EPF interest rate for last year was determined on the basis of income and surplus for 2015-16.
Source: Times of India