The Employees'
Provident Fund Organisation's apex decision making body the Central Board of
Trustees (CBT) will meet on Monday to discuss and approve the proposal
regarding rate of return to be provided on PF deposits in 2013-14.
"We will
demand for 9.5 per cent rate of interest for subscribers for the current
fiscal, higher than 8.5 per cent provided for 2012-13," All India Trade
Union Secretary and a CBT member D L Sachdev told PTI.
He said:
"This rate of 8.5 per cent is less than the interest provided by banks
these days, and would not be able to cover inflation."
Retail
inflation for industrial workers in November was 11.47 per cent. This is the
rate of inflation which is used by central government for computing hike in
Dearness Allowance.
According to
EPFO estimates in its proposal for the trustees, payment of 8.5 per cent rate
of interest on PF deposit for this fiscal would leave a small surplus of Rs
56.96 crore.
The EPFO, which
is estimated to have an income of Rs 20,796.96 crore in the current fiscal,
needs Rs 20,740 crore to pay 8.5 per cent interest to its subscribers, as per
the agenda listed for the CBT meeting.
As per the
estimates, hiking the interest payment by half a per cent to 9 per cent would
require an additional amount of Rs 1,220 crore, which does not seem feasible.
However,
another EPFO trustee and All India Secretary Bhartiya Mazdoor Sangh Virjesh
Upadhyay said: "The interest rate for this fiscal could be higher than 8.5
per cent provided in 2012-13.
"We have
certain suggestions. We will put those before the CBT. If we reduce certain
administrative expenses and improve efficiency then payment of interest rate
higher than 8.5 per cent will be possible."
Upadhyay said
that he would also demand 9.5 per cent interest on PF deposits for
2013-14.
Source : www.economictimes.indiatimes.com
[http://economictimes.indiatimes.com/articleshow/28517883.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst]
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