I will meet PM for EPF rate revision: Rao / Dec 14, 2005

From Indiapensions

I will meet PM for EPF rate revision': Rao

New Delhi: Faced with stringent protests from the Left trade unions, Labour Minister K Chandrasekhar Rao today said he would take up the issue of revision of Employees Provident Fund (EPF) interest rate, which was cut by one per cent last week, with Prime Minister Manmohan Singh.

"I would try to impress upon the Prime Minister to increase the EPF rate, by whatever is possible," Mr Rao told reporters at a workshop of PF Commissioners here.

The Labour Ministry has yet to take a final decision on the cut in EPF rate from 9.5 per cent to 8.5 per cent for the current financial year announced by the Employees Provident Fund Organisation (EPFO), he added.

"My heart as the Labour Minister goes out for the welfare of the workers," Mr Rao said.

According to him, his ministry was exploring all possiblities to "satisfy one and all". Mr Rao will meet Dr Singh when he returns tomorrow from the ASEAN Summit in Kuala Lumpur and hold talks with Finance Minister P Chidambaram on EPF rate and labour reforms.

Today's meeting of PF Commissioners was called by the Labour Minister to explore the possibility of generating additional funds needed to meet the perceived shortfall in paying EPF interest for this year.

"EPFO is not a commercial organisation. It is for the social security of workers. We want to give them a rate of interest as high as possible," Mr Rao said.

The Prime Minister and the Finance Minister have both put the financial burden for paying EPF interest at the doorsteps of the Labour Ministry.

Officials of the EPFO say it may not be difficult to meet the interest payments this year, but it would face a financial crunch in the long term if the rate is upwardly revised at the insistance of the trade unions.

Left trade unions, including the CPI(M)-backed CITU and the CPI-affiliate AITUC, have announced an 'All India Protest Day' on December 20 against the cut in EPF interest rate.