Wednesday, January 11 2006 16:37 Hrs (IST) - World Time -

New Delhi: Communist Party of India-Marxists (CPI-M) and other trade unions today (Jan 11, 2006) flayed Government notifying the Employees Provident Fund (EPF) rate of interest at 8.5 per cent and demanded its restoration to 9.5 per cent.

"It is unfortunate that the Government has notified the EPF rate of interest at 8.5 per cent this year. This will be a loss for four crore workers and employees, a majority of whom are employed in small and medium industries," CPI(M) Polit Bureau said in a statement here.

Demanding an increase in the rate of interest on the Special Deposit Scheme (SDS), it said the scheme was created in the 70's to provide a better rate of interest on PF to workers.

"The Government has benefited greatly from the SDS as under the scheme the Government has secured over one lakh crore rupees from EPF deposits. A marginal increase in the rate of interest on SDS can ensure 9.5 per cent," it said.

Charging the UPA Government with ignoring and rejecting the demand from all trade unions, Centre of Indian Trade Unions (CITU) said that the Government has notified the interest rate despite an assurance from Prime Minister Manmohan Singh to reconsider the matter.

"The UPA Government owes an explanation to the entire working class," CITU Secretary Dipankar Mukherjee said calling up the entire working class irrespective of affiliation to rise in protest and force the Government to reverse the decision.