Rate reduction in EPF resented in Rajya Sabha

NEW DELHI: The slashing of EPF interest by 1.25 per cent was today strongly resented by members in the Rajya Sabha with opposition demanding higher interest rate.

Raising the issue during Zero Hour, Tapan Kumar Sen (CPI-M) said the reduced rate of interest would badly hit five crore workers who help in the nation's development.

"I denounce the most anti-worker unilateral step to reduce the interest on EPF of workers...these workers have been ill-treated by the government," he said.

Sen said the government has taken this decision totally ignoring the unanimous opposition to it by all all trade unions and dubbed it an "insult" to basic democratic principles.

He said workers were being subjected to such "undue harassment" at a time when "the rate of interest is increasing... RBI has decided to increase interest."

Sen alleged that the money of the workers is being treated in a "shabby" manner.

BJP members Chandan Mitra, S S Ahluwalia, Tarun Vijay and Prakash Javadekar associated themselves with the issue.

The interest rate on deposits in Employees Provident Fund has recently been reduced from 9.5 per cent to 8.25 per cent for 2011-12.