The Hindu : National : Over 10 lakh workers deprived of EPF interest

Online edition of India's National Newspaper
Monday, Oct 04, 2004

National

National

Over 10 lakh workers deprived of EPF interest

NEW DELHI, OCT. 3. Confusion over the interest rate on the Employees Provident Fund has deprived over 10 lakh workers, who have quit or lost jobs, of their legitimate dues for the first five months of this fiscal.

Interest has not been credited in the EPF accounts of those over 10 lakh workers who have quit or lost jobs till August, informed sources told PTI here.

This was due to a confusion over the interest rate as the Central Board of Trustees (CBT) of Employees Provident Fund Organisation had recommended only an ``interim'' return of 8.5 per cent, one per cent lower than that in 2003-04.

As the CBT had proposed only an ``interim'' interest rate, the Finance Ministry had not ratified the rate for this year because there was a gap of over Rs. 200 crores between interest earned and that offered to subscribers.

Unless the Finance Ministry ratifies the rate, workers will not be eligible to get the interest on their hard-earned savings. ``How will they [Finance Ministry] ratify the rate since there is no clarity as to what will be the final interest rate,'' the sources said.

The Labour Ministry would be able to notify the interest rate on EPF only after getting ratification from the Finance Ministry, the Ministry sources said.

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