Dr Ramdas said the reduction of the provident fund to 8.10 per cent was unreasonable and should be withdrawn by the central government.
Record: March 14, 2022 03:22
AM
Chennai,
It is shocking that the annual interest rate on workers’ provident fund (PF) has been reduced to 8.10 per cent in 2021-2022. It is unjust to have a one-time 0.40 percent cut in interest rates on provident funds that guarantee workers’ social security. This is the lowest interest rate on futures deposits in the last 44 years.
There is no justification for lowering the interest rate on provident funds. Refusing to pay even 8.5 per cent interest is a great injustice. It is not fair to say that interest on futures deposit funds should also be reduced as only 6.5 per cent interest is paid on investments made in banks.
To be withdrawn
The rich and big corporations in the banks would have deposited their surplus money for security. But futures deposit investments are not like that. Workers’ monthly wages, even if they are not enough to cover their family expenses, are used to cut costs and invest in a provident fund for future social security. The interest on it should not be reduced.
This shows that the post-retirement period of workers is becoming insecure. The federal government should reverse the reduction in interest rates on their provident funds to 8.10 percent to ensure a secure future for workers. The government should ensure that at least 10 per cent interest is paid on the provident fund.
Thus he is saying.