New
Delhi: The Employees Provident Fund Organisation (EPFO)
on Monday reduced the annual rate of interest to 8.5 per
cent from 9.5 per cent paid in the previous year on the
fund deposits of subscribers for 2004-05. The decision
affects more than three crore subscribers.
This
is an interim interest rate and depending on how interest
rates move in the future, it could be revised later. The
reduced rate would result a deficit of Rs206 crore for
the EPFO in the current fiscal year.
All
the trade unions except the Congress affiliated INTUC
are unhappy
over the decision. The trade unions supported by the Left
parties are reportedly calling for a demonstration against
the cut on September 20.
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