The Hindu Business Line
PF interest rate hiked to 8.8%
Labour Minister launches Compliance Analysis & Monitoring System
The Employees Provident Fund Organisation ( EPFO) has increased the interest rate for PF deposits for 2015- 16 to 8.80 per cent from 8.75 per cent. This will benefit over 40 million subscribers in 8.60 lakh establishments. This is only an interim announcement based on the Budget estimates for the current financial year.
The Employees Provident Fund Organisation ( EPFO) has increased the interest rate for PF deposits for 2015- 16 to 8.80 per cent from 8.75 per cent.
This will benefit over 40 million subscribers in 8.60 lakh establishments.
This is only an interim announcement based on the Budget estimates for the current financial year.
“We will revisit the interest rates based on the revised estimates,” said Minister for Labour & Employment Bandaru Dattatreya to newspersons after chairing the 211th meeting of Central Board of Trustees, Employees' Provident Fund to consider EPF interest rate for 2015- 2016. Union leaders present in the meeting had wanted the rate pegged at 8.90 per cent. However, the Minister said ýthat it was not possible to give 8.90 per cent.
The Budget income for 2015- 16 will be ₹ 34,834 crore. An 8.80 per cent interest payout will leave the organisation with a surplus of ₹ 673 crore. However, if the interest rate was kept at 8.90 per cent, the surplus will drastically reduce to ₹ 285 crore, he said.
The revised interest rate was fixed after considering issues like international recession, expected drop in interest rates in India and the 7th Pay Commission. “However, we need to safeguard workers’ interest,” he said.
Dattatreya also launched a Compliance Analysis & Monitoring System. Principal employers registered with EPFO will upload contract details awarded to be made available to EPFO for checking. The new system will ensure transparency and reduce the cost of compliance for prin- cipal employers and result in proper coverage of eligible employees, he said.
A release quoting Shankar Aggarwal, Secretary ( Labour & Employment), said that online facility to upload work orders, outsourced job contracts and contract workers related information will provide effective e- governance system in the compliance set up of EPFO. It will enhance the coverage to extend EPF and allied benefits to eligible employees.
Under the compliance system, after the data is collected from different sources, they will be forwarded to field offices with specific direction.
Field offices will take compliance action and upload the report. With the new facility, more number of contract workers will be brought under EPFO without causing undue interruption in the work of principal employers.
The Minister also unveiled the Simplified Pension Claim Form 10D ( UAN) and single page Pension Payment Order and the Simplified Pension Claim Form 10D ( UAN) and single page Pension Payment Order under the Employees’ Pension Scheme, 1995.