EPF Board retains 8.5 pc rate for '07
The EPF Board agrees to continue paying 8.5 pc interest rate to its nearly four crore subscribers for fiscal 2006-07.
By PTI |
NEW DELHI: Bowing to pressure from Left- backed trade unions, the Employees Provident Fund Board on Monday agreed to continue paying 8.5 per cent interest rate to its nearly four crore subscribers for fiscal 2006-07 as well.
"Amid protest by some trade union representatives, it has been decided to pay 8.5 per cent interest rate on provident fund," Labour Minister Oscar Fernandes told reporters after a three-hour meeting of the EPF Central Board of Trustees.
The decision to retain 8.5 per cent interest will put a burden of Rs 450 crore on the EPF fund but sources said that the deficit could be offset from a surplus of Rs 590 crore lying in the Interest Suspense Account, Contingency Reserve and Special Reserve Fund.
The Board will submit its recommendations to the Finance Ministry, which is expected to notify the rate shortly.
Fernandes said the EPF had constituted a sub-committee to assess the Board's finances. The report of the committee placed before the meeting for deliberation found that there would be a surplus of Rs 595 crore with the board.
Even after paying 8.5 per cent interest rate, the fund would be having a surplus of Rs 83 crore.
The EPF has a corpus of Rs 94,000 crore including pension fund.
"Amid protest by some trade union representatives, it has been decided to pay 8.5 per cent interest rate on provident fund," Labour Minister Oscar Fernandes told reporters after a three-hour meeting of the EPF Central Board of Trustees.
The decision to retain 8.5 per cent interest will put a burden of Rs 450 crore on the EPF fund but sources said that the deficit could be offset from a surplus of Rs 590 crore lying in the Interest Suspense Account, Contingency Reserve and Special Reserve Fund.
The Board will submit its recommendations to the Finance Ministry, which is expected to notify the rate shortly.
Fernandes said the EPF had constituted a sub-committee to assess the Board's finances. The report of the committee placed before the meeting for deliberation found that there would be a surplus of Rs 595 crore with the board.
Even after paying 8.5 per cent interest rate, the fund would be having a surplus of Rs 83 crore.
The EPF has a corpus of Rs 94,000 crore including pension fund.
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