The Congress on Wednesday accused the Narendra Modi government of "backstabbing" honest tax payers by lowering the interest rate on EPF.
Retirement fund body Employees Provident Fund Organisation (EPFO) on Wednesday declared 8.55 percent interest rate on provident fund deposits for 2017-18, lower than 8.65 percent for 2016-17 which will impact its about 5 crore members
The Finance Ministry has been following the cost reduction approach in the process spurning and undermining the more demanding income-enhancement approach.
For the third time in two months, finance minister, Arun Jaitley, has been forced to go back on his words on the Employee Provident Fund Issue (EPF). The latest reversal came on Friday when the finance ministry increased the EPF rate to 8.8 per cent from 8.7 per cent decided earlier.
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.
A day before nationwide protest by trade unions against lowering of EPF interest rate, Labour Minister Bandaru Dattatreya today said that he will discuss the issue with Finance Minister Arun Jaitley.
The Finance Ministry has approved 8.7 per cent interest on PF deposits for over 5 crore subscribers of retirement body EPFO, lower than 8.8 per cent decided by the Central Board of Trustees (CBT).