Over 10 lakh workers who quit or lost jobs so far this fiscal got a major relief on Monday with the government taking a decision to pay 8.5 per cent interest on employees provident fund.
A notification in this regard has been sent by the labour ministry to the employees provident fund organisation, asking to pay 8.5 per cent interest on outstanding balances of those workers who have either lost or quit jobs, official sources said.
There was confusion over paying 8.5 per cent interest this year since central board of trustees of EPFO had suggested only interim returns, and as a result the interest accrual was held back by authorities.
As the CBT had proposed only an "interim" interest rate, the finance ministry has not ratified the rate for this year because there was a gap of over Rs 200 crore (Rs 2 billion) between interest earned and that offered to subscribers.
In view of the delay in crediting interest, Left parties' trade unions, CITU and AITUC had demanded immediate relief to those workers.
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