Is the Left Right ?
The leftists and unions have been raising a big hue and cry over the cut in EPF intrest rates from 9.5% to 8.5%. Now let us tarry for a minute and think here. The cut in rates can be thought of akin to the cut in bank intrest rates. Hence if you have say 1000rs in your EPF then a simple arithmetic will tell you that it matters little whether you have 8.5% or 9.5% intrest rate. However if you have say a lakh rupees then it does matter right ? So we can now safely conclude that higher the intrest rates, the higher are the benefits for those having huge sums of money in their EPF's.
Now in public sector organizations, the EPF comes to little around a few thousands every year. The cumulative intrest accrued is also along those lines only.
With all this being the case, the question that needs to be raised is that are the commies the real supporters of the working class, or is this just another political gimmick by the commi no-brainers ?
A real point to ponder.
K.Shyam
Posted by Unknown at 10:51 AM
2 Comments
Shyam,
If we have a look at the average age of the public sector employee its around the 40 year old mark, with work experience of minimum 15 years. So if some one is working for that long in an organisation he is expected to have few lakhs in his EPF kitty. So it will definetly matter then when you have an interest rate of 8.5 or 9.5%.
So what the commies is doing is doing is pretty gud according to me.
along similar lines, do u think people who have huge amount of money in the EPF would really bother about the 8.5% or 9.5% interest rate as the interest amount would be pretty small compared to their total EPF amount.
It really matters for the people who earn less and any amount they get extra is important for their needs.
But given the deficit being made with 9.5%, I don't think there is much that can be done!
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