PF in­ter­est rate hiked to 8.8%

Labour Min­is­ter launches Com­pli­ance Anal­y­sis & Mon­i­tor­ing Sys­tem

The Hindu Business Line - - FRONT PAGE -

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.

Min­is­ter of Labour and Em­ploy­ment Ban­daru Dat­ta­treya at the launch of "Com­plaint Anal­y­sis and Mon­i­tor­ing Sys­tem" of Em­ploy­ees' Prov­i­dent Fund Or­gan­i­sa­tion, in Chen­nai on Tues­day. PTI

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