Decision on EPF rate postponed to December

New Delhi, Nov 7: Employees' Provident Fund Organisation (EPFO) today deferred to next month revision of EPF interest rate that Left trade unions say should be restored to its original 9.5 per cent from the present 8.5 per cent.

After a nearly four-hour meeting, chaired by new Minister of State for Labour (Independent Charge), Oscar Fernandes, it was decided to hold the next meeting before December 10.

The sub-committee formed earlier under the chairmanship of Bharatiya Mazdoor Sangh vice-president A Venkataraman was asked to submit its report on the availability of surplus funds with the EPFO to arrive at a final decision on revision, Mr Fernandes told reporters after the meeting.

EPFO sources told UNI that Mr Venkataraman has been given two weeks to submit his report, which would now determine whether to slash the interest rates or retain the present rate for 2006-7.

According to Left unions, which are represented on the EPFO Central Board of Trustees, Prime Minister Manmohan Singh has assured the rate would be increased.

EPFO and trade union sources, however, say the government, which has the final say in the matter, would go for a middle path by deciding against any cut, which could anger the Left parties.

The EPFO Board also took up for discussion changes to be made in the Employees' Pension Scheme, 1995, but decided to wait till Mr Fernandes met leaders of central trade unions to resolve the issues.

The Board meeting held at the Bhavishya Nidhi Bhavan of EPFO was attended by representatives of central trade unions, state governments and the Labour Ministry.

Among the other issues which came up for discussion were simplifying the procedure for grant of exemption following the recent amendment in the Income Tax laws relating to Provident Fund trusts.

EPFO is on a major modernisation drive to strengthen its registration and subscription collection with six pilot projects running in Hyderabad, Mangalore, Kota, Karnal, Patna and Indore.

UNI