New Delhi: Government has agreed to restore the EPF (Employees Provident Fund) interest rate to 9.5 per cent from the present interim 8.5 per cent for this fiscal before the next budget, CPI (Communist Party of India) MP Gurudas Dasgupta claimed today (Dec 16, 2004).

"As I understood him (Prime Minister Manmohan Singh), he agreed to increase the interest rate from 8.5 per cent to 9.5 per cent," Gupta told NDTV in New Delhi.

He said indications to this effect were available from Prime Minister Manmohan Singh when he led a delegation of leaders of his trade union All India Trade Union Congress today to apprise him of workers and peasants' problems.

Asked about the objection of Finance Ministry that such a high EPF interest rate was not sustainable, he said it was not his problem.

"Government has made up its mind to increase the EPF rate from 8.5 per cent to 9.5 per cent," he added.

As per the calculations of Central Board of Trustees of Employees Provident Fund Organisation, offering 9.5 per cent would lead to an un-funded gap of Rs 927.15 crore between what it gives to over four crore beneficiaries and what it earns on investments.

"I am definitely of the view that interest rate is going to be increased from 8.5 per cent to 9.5 per cent before the next budget," Gupta said.