The private provident fund trusts are pressuring the government to allow them to continue with paying 8.5% interest to the PF account holders as last year without paying the 9.5% announced by the Employees Provident Fund Organisation. Their contention is that they are not able to give the higher interest.

The private provident fund has been entrusted with PF accounts with the understanding that they will be able to get higher interest. How can they refuse the % what the EPFO is paying? They idea is to use the PF corpus to their benefit but not give the benefit to the workers. This can not be allowed.

The reply by the Labour Secretary P.C.Chathurvedi to the argument is clear, ” They have no option. They have to give 9.5% interest….If they can not do so, the exemptions given to them will be cancelled.”

The government should stand firm on their decision.
(Inputs from a report in Economic Times)