Kolkata: Reacting sharply to a report that the Centre was yet to clear the Employees Provident Fund (EPF) rate for 2003-04, CPI (Communist Party of India) leader Gurudas Dasgupta today (Sep 14, 2004) said whatever might be the shortfall in the fund, the EPF interest rate had to be raised to 9.5 per cent.

Dasgupta, general secretary of CPI's labour arm AITUC (All India Trade Union Congress) told sources in Kolkata that even if there was a shortfall in the fund, the Government must make good the deficiency.

"If the Government can offer to lose Rs 6,000 crore by reducing turnover tax, it can very well spend from its funds for the 3 crore PF beneficiaries, most of whom are low-paid industrial workers and contract labourers."

"If the Government does not act, then it would have to face a massive trade union movement to realise our demand," he said.

Commenting on the report, the CPI leader said that interest at the rate of 9.5 percent had to be given irrespective of whether the Government was yet to approve the suggested pay-out of 9.5 per cent declared for 2003-04 by the Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) because of a shortfall of Rs 67 crore in the fund.

The EPFO on August 9 announced a reduced interim interest rate of 8.5 per cent for the current year, down from 9.5 per cent.