The Hindu : National : Ministry's committee to discuss EPFO on Dec. 14

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Wednesday, Nov 10, 2004

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Ministry's committee to discuss EPFO on Dec. 14

By Our Staff Correspondent

NEW DELHI, NOV. 9. The Labour Ministry will hold a special meeting of its Consultative Committee on December 14 to discuss the functioning of the Employees Provident Fund Organisation (EPFO).

This was decided after the All-India Trade Union Congress (AITUC) and the Centre of Indian Trade Unions (CITU) leaders today expressed their unhappiness over its working.

The Labour Minister, Sis Ram Ola, who chaired today's Consultative Committee meeting, came under fire from the Left-affiliated Members of Parliament.

They said that the Ministry was not discharging its duties properly and accused it of failing to protect the interests of workers.

EPF interest rate

The AITUC general secretary, Gurudas Das Gupta, alleged that interest was not being credited to the accounts of the EPF account-holders since there was no fixed rate of interest.

"An interest of 8.5 per cent is being given only to those who are retiring while for the remaining 3 crore subscribers, no interest is being credited."

This accounting anomaly could lead to underpayment, he said.

"We were given to understand that the Government was intending to raise the interest rate from 8.5 to 9 per cent but it is unfortunate that nothing of that sort has been done," he said.

Mr. Das Gupta said an unclaimed account of Rs. 942 crores with the EPFO indicated that there was something wrong with its functioning.

Mr. Das Gupta, supported by the CITU leader, Chittbrata Mazumdar, said that the labour laws were being violated and the interest of the working class was not being protected.

He wanted amendments to the Minimum Wages and Bonus Acts.

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