Rao to consult PM on EPF rates, promises best bet for employees / Dec 15, 2005 / Financial Express
From Indiapensions
Rao to consult PM on EPF rates, promises best bet for employees
NEW DELHI: Labour minister K Chandrasekhara Rao on Wednesday hinted at a relook at the interest rate of the Employees Provident Fund (EPF) for the year 2005-06. He said the matter would be taken up with the Prime Minister at the earliest. The labour ministry had earlier proposed to slash the EPF rate by 1% to 8.5% in the current fiscal, which raised the hackles of most of the political parties.
"Let the Prime Minister come back (from abroad). May be,I will meet him on Thursday itself," he told reporters on the sidelines of a conference of regional provident fund commissioners.
Mr Rao said as the chairman of the central board of trustees (CBT) of the employees provident fund (EPF), he had announced lowering of the interest rate by 1% to 8.5% as recommended by the board.
"But, I am yet to announce a final decision as the labour minister. As the labour minister, I will try my best," he said.
The minister said he would also talk to the finance minister and do everything possible to ensure that four crore subscribers get the best return." Every rupee in the EPF will be taken into account and, if needed, some rules might have to be changed," he said when asked about the ways to mobilising additional resources.
The Prime Minister had recently said he would talk to the labour minister on the issue and do whatever would be possible within the resources of the EPFO. He, however, had ruled out any budgetary support to retain EPF interest rate at 9.5%.
The labour minister said there was a need to improve the functioning of the EPFO and the Employees State Insurance Corporation (ESIC).
Referring to certain schemes launched by the UPA government, he said the housing scheme for beedi workers has been liberalised. Under the ESIC, a scheme called Rajiv Gandhi Shramik Kalyan Yojana had been launched to provide 50% of the last salary drawn for six months to a worker who has lost his job.
He also said super-speciality hospitals would come up soon in four zones of the country to provide better medicare to the ESI beneficiaries.
Besides, the ministry was planning to expand ESI coverage to certain vulnerable sectors like the building sector.
