Tuesday, December 27 2005 19:44 Hrs (IST) - World Time -

New Delhi: The notification on the EPF rate for the current fiscal will be issued very soon, Labour Minister K Chandrasekhar Rao today (Dec 27, 2005) said, but declined to reveal whether the interest rate would be increased.

The Central Board of Trustees of the EPF had recommended a one per cent cut in the rate from 9.5 per cent to 8.5 per cent, triggering protests from employees and trade unions.

After his meeting with Prime Minister Manmohan Singh, where Finance Minister P Chidambaram was also present, Rao told reporters that the Labour Ministry would consider the EPF Board's recommendation and issue the notification 'as early as possible'.

To a specific question whether the rate would be increased, Rao said, "You will come to know when the notification is issued".

Rao's meeting with the Prime Minister assumes significance in view of the Minister's earlier assurance that he would do everything possible for 'best returns' to the subscribers of the Employees Provident Fund (EPF) and take up the issue with the Prime Minister.

Rao had also said that he had announced lowering of the interest rate by one per cent to 8.5 per cent, the rate recommended by the EPF board, in his capacity as the Chairman of the Board. "But, I am yet to announce a final decision as the Labour Minister. As Labour Minister, I will try my best," he had said.

The Prime Minister had recently said that he would talk to the Labour Minister on the issue and do whatever was possible within the resources of the EPFO.

Singh has, however, ruled out any budgetary support to retain EPF interest rate at 9.5 per cent as demanded by trade unions and some political parties, including Left parties supporting the UPA from outside.