Panel for 9.5% interest on EPF

New Delhi, May 17 | Updated: May 18 2006, 05:30am hrs
A Parliamentary panel on Wednesday expressed deep concern over lowering of rate of interest on EPF deposits ,and strongly favoured at least 9.5% interest from 2005-06 onwards, to safeguard the interest of nearly four crore subscribers.

The standing committee on labour in its report tabled in the Lok Sabha noted that the government should always evolve a consensus while taking any decision on important issues concerning workers. It said trade unions must invariably be consulted by government while deciding the rate of interest.

The committee, headed by S Sudhakar Reddy, in its 70-page report said it was deeply concerned to note that out of 39.7 crore strong workforce in the country, only 4.11 crore workers have so far been covered under the EPF scheme. It asked the government to intensify efforts for providing social security cover to every single eligible person.