EPF board defers decision on interest rates for 2008-09

July 5th, 2008 - 7:59 pm ICT by ANI  

New Delhi, July 5 (ANI): The Central Board of Trustees of the Employees Provident Fund Organisation today has deferred its decision on the interest rates of 2008-09 till its next meeting.

It also decided that industries having ten or more employees would now come under the ambit of the EPFO.

The Left supported Centre of Indian Trade Unions (CITU) has demanded around 12 per cent interest rates for the current fiscal, citing the high rate of inflation.

The All India Trade Union Congress (AITUC) has been demanding at least 9.5 per cent interest as assured by the Prime Minister in 2004 for 2005-6 and in 2006-7, the rates have been stable at 8.5 per cent.

Over four crore subscribers of the EPFO got 8.5 per cent in the last fiscal year.

The EPFO was formed in 1952 following the enactment of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

At present the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, covers only establishments with 20 or more employees. In the case of co-operatives the number is 50.

The move along with the social security cover envisaged for unorganised sector under the Unorganised Sector Bill is expected to lead to a huge expansion of social security cover reaching out to almost all kinds of units irrespective of the number of employees. (ANI)

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