Insurance Corporation Employees’ Union (ICEU) Machilipatnam division joint secretary Ch. Kaladhar said the recommendation of the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) to reduce the interest rates on EPF deposits from the current 8.5% to 8.1% in FY 2021-22 has deeply disturbed the employees and workers.
He stated in a press release that if the recommendation is notified, it would be the lowest interest rate on EPF deposits in more than four decades. The move will seriously impact the earnings of over sixty million EPF subscribers.
Mr. Kaladhar said the reduction in interest rate would be a body blow to the employees who are already facing high inflation.
He insisted that the EPF deposits need a differential treatment because they are a recurring lifetime savings of the employees and form an important component of their social security.
He denounced the Central government’s proposal to tax EPF contributions exceeding ₹2,50,000 per annum.
Further, Mr. Kaladhar stated that the All India Insurance Employees’ Association wrote a letter on March 15 to Bhupender Yadav, Union Minister for Labour and Employment to reconsider the decision to slash the EPF interest rate.
