'Reduction in EPFO interest rate BJP's return gift to people post poll win'

Taking a swipe at the government, the Congress on Saturday said the reduction in EPFO interest rate was a "return gift" of the BJP to people following its victory in the just-concluded assembly polls.

"The income of 84 per cent people of the country has decreased. Is it right to attack the savings of crores of employees on the basis of electoral victory?" asked Congress general secretary and chief spokesperson Randeep Surjewala.

"The EPFO has reduced the interest rate on PF deposits to the lowest level in 10 years. Is this the 'return gift' of BJP's victory," he asked in a tweet in Hindi.

Interest rate on employees' provident fund deposits on Saturday was proposed to be cut to a four-decade low of 8.1 per cent for the current 2021-22 fiscal from 8.5 per cent in the previous year, sources said.

This is the lowest interest rate since 1977-78 on deposits that employees make towards their retirement fund. Interest rate on employees provident fund that year stood at 8 per cent.

The interest rate for the current fiscal year ending March 31 was set by the retirement fund body EPFO for its about five crore subscribers.

In the just-concluded assembly elections to five states, the BJP won in four -- Uttar Pradesh, Uttarakhand, Manipur and Goa -- while the AAP swept Punjab.