Decision on PF interest rate may be put off

The Central Board of Trustees of Employees Provident Fund is likely to defer a decision on interest rate to be given to its more that 4 crore (40 million) employees this fiscal.

While, union representatives at the CBT, particularly those affiliated to the Left parties, demanded 9.5 per cent interest rate, other representatives including those from employers' side, central and state government officials were of the view that interest rate be in proportion to the returns from the EPF fund.

Meanwhile, Labour Minister Oscar Fernandes, who is ex-officio chairman of the EPF board, will leave the meeting to attend the Parliament session.

Sources said the meeting is likely to postpone a decision on EPF rate as there is no unanimity amongst members.

Coming out of the meeting CITU representatives Wardhrajan said, "We have asked the labour minister to take up the union's demand for 9.5 per cent interest rate with Prime Minister Manmohan Singh."

He said the prime minister had promised in 2004 not to reduce the EPF rate below what was given by the National Democratic Alliance regime -- 9.5 per cent.

Titagarh Industries chairman J P Chaudhary said that the majority view is that interest rate could not be given beyond what is earned by the fund.