Modi govt’s decision to cut PF interest rates completely exposes its anti-worker, pro-corporate agenda

The decision taken by the Modi government to cut interest rate on workers’ and employees’ PF deposits has just pushed workers 45 years back on social security at a time when the working class can ill afford it due to rising prices and inflation, besides the financial crises they have been facing for the last two years due to the COVID-19 pandemic. This is in sharp contrast to the magnanimous speeches made by the leaders vowing to protect workers’ interests.

The yearly inflation has been projected to grow at 5.3 per cent while interest rates on PF deposits has been reduced to 8.1 per cent, which implies that the effective gain for workers will be only 2.8 per cent yearly on their deposits.

Though the workers and employees are entitled to dearness allowance, and some of them have been getting it, many others have lost their jobs during the pandemic.

Out of job workers and the workers who are re-employed on lower wages are likely to be the hardest hit by the decision of reducing interest rates on PF deposits, and hence the move is inhuman.