Allahabad: It seems the employees of Allahabad Municipal Corporation (AMC) are bearing the brunt of rigid departmental rules. The salary of around 7,000 workers and employees of the Municipal Corporation deducted in the name of Provident Fund (PF) but is deposited in savings account causing them loss of 4.5 percent interest on their hard earned money.

Though the Ministry of Labour and Employment has issued a notification making it clear that the employees of the Municipal Council and Municipal Corporation are also entitled to PF benefits, the concerned amount instead of being deposited in the Provident Fund Organisation goes to their savings account in the UCO Bank.

The employees receive merely 3.5 percent interest on their savings account whereas they could have enjoyed benefits of 8 percent interest on a PF account.

According to Nagar Nigam Karamchari Sangharsh Samiti General Secretary Rajendra Paliwal, the employees are bearing a loss of 4.5 percent interest due to their salary being deposited in the savings account.

Whereas, Account Officer TN Mishra said, “The Municipal Corporation has a provision of savings account only. We are aware of the employees’ suffering but we are bound by the orders of the Urban Development Department. We are not liable to follow any orders of any other department or ministry.”

He added, according to the new rules issued by the Central government, the municipal administration would have to pay 12 percent fine on the specific amount on non-deduction of PF. And if the Municipality does not implement the system within three years, it will have to pay 25 percent compensation too.