CITU denounces Government’s decision to reduce EPF rate of interest for 2011-12 15.03.2012CITU strongly denounces the Government’s unilateral decision in nexus with the Employers to reduce the interest rate on Employees Provident Fund (EPF) from 9.5% to 8.25% for the year 2011-12, ignoring the unanimous demand of all central trade unions to maintain the existing rate of interest. The demand was reiterated time and again by trade union representatives in CBT meetings.

It is shocking that when during the span of last more than one year, the interest rate for banks and financial institutions has been raised several times for addressing the inflationary situation, same is being denied to more than five crore workers covered under EPF. Unlike other deposits including term-deposits and fixed – deposits in banks and financial institutions, the provident fund of workers is a social-security fund which is a longest term recurring fixed deposit and this fund remains with the government continuously for long twenty-five to thirty years. This fund deserves a much higher rate of interest than the usual fixed deposits with the banks and financial institutions.

CITU demands that the government should immediately rescind its decision and restore the existing rate of interest of EPF for the year 2011-12.

CITU calls upon all its affiliated unions to organize massive protest demonstrations before RPFC offices against this anti-worker decision of the government.

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