Govt increases EPF interest rate to 8.8 percent bowing to trade union pressure

The government was forced to take a U-turn on the Employee Provident Fund (EPF) issue yet again on Friday when it increased the rate to 8.8 per cent from 8.7 per cent decided earlier. The Central Board of Trustees (CBT) had originally recommended 8.8 per cent.

FP Staff April 29, 2016 18:28:51 IST
Govt increases EPF interest rate to 8.8 percent bowing to trade union pressure

The government was forced to take a U-turn on the Employee Provident Fund (EPF) issue yet again on Friday when it increased the rate to 8.8 per cent from 8.7 per cent decided earlier. The Central Board of Trustees (CBT) had originally recommended 8.8 per cent.

Govt increases EPF interest rate to 88 percent bowing to trade union pressure

Thinkstock

The reversal came after trade unions threatened nationwide protests to press their demand. On Thursday, the labour minister, Bandaru Dattatreya, had said he will discuss the issue with Finance Minister Arun Jaitley.

"I am happy that finance ministry has agreed to 8.8 per cent for 2015-16," Dattatreya told reporters in Delhi on Friday.

This is the third time the government is forced to take back his decision on the EPF issue since February. First was when the government proposed in the 2016 Union Budget to tax 60 per cent of the EPF corpus, which it had to roll back almost immediately on account of mass protests.

Second was when the amendment on the age limit to withdraw the retirement corpus to 58 years from 54 earlier was brought in, only to roll back after trade unions protested.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Haryana livestock development board chief, Sombir Sangwan, resigns, extends support to protesting farmers
India

Haryana livestock development board chief, Sombir Sangwan, resigns, extends support to protesting farmers

In a letter to ML Khattar, the Haryana MLA said, 'Farmers from my Assembly constituency Dadri are also protesting the farm laws... extending my full support to them is a priority'

'Delhi chalo' protest: Farmers' unions accept Centre's offer for talks over new laws
India

'Delhi chalo' protest: Farmers' unions accept Centre's offer for talks over new laws

On Monday, the farmers had said that they have come to the National Capital for a 'decisive battle' and urged Narendra Modi to listen to their 'mann ki baat'

Talks between 35 farmers' unions, Centre inconclusive, next meet on 3 Dec; Bhim Army extends support to protesters
India

Talks between 35 farmers' unions, Centre inconclusive, next meet on 3 Dec; Bhim Army extends support to protesters

Bharatiya Kisan Union (Ekta Ugrahan) member Roopsingh Sinha told PTI that the farmer's unions’ have rejected the govt’s proposal to form a five-member committee to look into the issues related to the new farm laws, however, there is no official confirmation yet