The government has been compelled to restore the EPF proposed interest rate, before the strong protest of the trade unions.
Though EPFO has recommended 8.8 % interest for its subscribers for 2015-16, the Finance ministry decided to reduce it arbitrarily to 8.7%, with out any justification. Strong protest action was organised by the trade unions on 29th April. There were severe criticism in Parliament also.
Now, the government has been compelled to retract its decision. Yesterday the government announced in the Parliament that 8.8% interest will be paid and there will be no reduction from the proposal of the EPFO.
Immediate reaction had its results. Government should not be allowed to take away the had earnings of the workers.