Provident fund trustees to press for 12 pc interest
Provident fund trustees will press for increasing the interest rates on PF to at least 12 per cent to prevent value erosion of deposits in the wake of soaring inflation.
By PTI |
NEW DELHI: Provident fund trustees will press for increasing the interest rates on PF to at least 12 per cent to prevent value erosion of deposits of over 4 crore government and non-government employees in the wake of soaring inflation.
"We would demand interest rate of something around 12 per cent for the current year (2008-09)," CITU National Secretary W R Varadarajan, who is also member of Central Board of Trustees of EPFO said.
When inflation is running amok interest rate should be restored to 2000 level of 12 per cent, he said. Inflation rate was around four per cent in January 2000.
For the week ended June 7, inflation rate stood at 11.05 per cent.
Presently, the government is paying interest rate of 8.5 per cent on provident fund deposits.
"If rate is not increased appropriately, it would mean erosion of hard earned money of crores of investors," Varadarajan said, adding that the issue of interest rate would be discussed at the next meeting of Central Board of Trustee scheduled on July 5.
Government reduced the interest rate on provident fund to 11 per cent in July 2000 and subsequently to 9 per cent in April 2001 citing lower inflation rate, he said.
Now when inflation is high and the trend is likely to continue for the most part of year, he said, the board should, in the interest of employees, recommend restoration of old rate.
The government would face similar demand for increasing the interest rates on post office savings scheme to provide a positive return on the saving public.
"We would demand interest rate of something around 12 per cent for the current year (2008-09)," CITU National Secretary W R Varadarajan, who is also member of Central Board of Trustees of EPFO said.
When inflation is running amok interest rate should be restored to 2000 level of 12 per cent, he said. Inflation rate was around four per cent in January 2000.
For the week ended June 7, inflation rate stood at 11.05 per cent.
Presently, the government is paying interest rate of 8.5 per cent on provident fund deposits.
"If rate is not increased appropriately, it would mean erosion of hard earned money of crores of investors," Varadarajan said, adding that the issue of interest rate would be discussed at the next meeting of Central Board of Trustee scheduled on July 5.
Government reduced the interest rate on provident fund to 11 per cent in July 2000 and subsequently to 9 per cent in April 2001 citing lower inflation rate, he said.
Now when inflation is high and the trend is likely to continue for the most part of year, he said, the board should, in the interest of employees, recommend restoration of old rate.
The government would face similar demand for increasing the interest rates on post office savings scheme to provide a positive return on the saving public.
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