Opposition including Congress, TMC, CPI(M) and TRS said that the Employees’ Provident Fund Organisation’s proposed reduction in interest rates on savings was an anti-people and anti-worker step.
The Central Board of Trustees of the Employees’ Provident Fund Organisation on Saturday proposed to lower the interest rate for subscribers on retirement savings scheme from the existing 8.5% to 8.1% for 2021-’22.
This is the lowest interest rate on employees’ provident fund deposits in four decades. The last time it was this low was in 1977-’78 at 8%.
“After the vote victory in UP, BJP government comes out with its gift card immediately,” West Bengal CM Mamata Banerjee said on Twitter. “This is amidst the pandemic-hit financial stresses of middle and lower middle class workers and employees of the country.”
According to TMC supremo, the stepexposes the crudely lopsided public policies of the current central establishment which espouses interests of big capital at the expense of farmers, workers, and middle classes.
Senior Congress MP Mallikarjun Kharge said that under the previous UPA government, EPF rates were always between 8.5% and 9.5%.
“Be it savings or FD rate, the safe banking instruments of the poor and middle class are delivering much lower returns, at a time of high inflation,” Kharge said.
“This is [as] cruel as it comes in the background of mounting hardships with growing job losses, galloping price rise, etc,” read a statement by the Communist Party of India (Marxist).
The state-run Employees’ Provident Fund Organisation is the country’s largest retirement fund with nearly 60 million active subscribers.
Provident fund accounts are mandatory for workers earning up to Rs 15,000 a month in companies with more than 20 workers. At least 12% of an employee’s basic salary is compulsorily deducted to be deposited in provident fund, while an employer also contributes an equal amount.
Labour Minister Bhupender Yadav on Saturday said that international conditions as well the stability of markets were considered while taking the decision.
Virjesh Upadhyay, a board member of the Employees’ Provident Fund Organisation, said that the decision was based on the “current position of earnings and deposits,” Hindustan Times reported.
The Telangana Rashtra Samithi also criticised the Union government’s move and called it as “a return gift by Union government to employees after a massive win.”
 and TRS said that the Employees’ Provident Fund Organisation’s proposed reduction in interest rates on savings was an anti-people and anti-worker step.){kind=link}