Decision on PF interest soon: PM

By Our Economy Bureau | 25 Jun 2004

New Delhi: Prime minister Manmohan Singh, has assured labour leaders from all over the country that he would take a decision on their demand for raising the interest rate on provident fund (PF) only after taking up the issue with the ministers of finance and labour.

"I will take up the demands with the ministers for finance and labour and then take a decision," Singh reportedly a delegation of labour leaders of the nine central trade unions who met him on Wednesday. He also assured the delegation that regular dialogues with trade unions would be on his priority list.

The trade unions were unanimous in their demand to raise the interest rate on employees provident fund (EPF) from the current 9.5 per cent. The labour leaders appealed to the prime minister that interest on provident fund should be treated separately from the soft interest regime of the banking system.

They were of the opinion that, if necessary, the government should provide for funds required for paying higher interest on PF deposits as social security expenditure.