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Decision later on EPF rate for 2007-08

Special Correspondent

NEW DELHI: The recommendation of the Central Board of Trustees of the Employees’ Provident Fund Organisation that the interest on the EPF be retained at 8.5 per cent for 2006-07 will mean a burden of Rs. 450 crore, Minister of State for Labour Oscar Fernandes said on Monday.

But there was an accumulated balance of Rs. 347.78 crore, a surplus of the past years lying in the Interest Suspense Account, Rs. 185.69 crore in the Contingency Reserve Fund and Rs. 56.69 crore in the Special Reserve Fund – totalling Rs. 590.16 crore. After meeting the deficit of Rs. 449.90 crore, the EPFO would still be left with a surplus of Rs. 83 crore while leaving untouched the amount in the Special Reserve Fund.

Talking to reporters, United Trade Union Centre-LS general secretary Sarkar Sen said:

“At a time when banks are paying even up to 10.5 per cent interest rate, the Government should come forward to support the Board to pay 9.5 per cent on EPF by raising the administrative rate of interest on the Special Deposit Scheme where a large chunk of the funds is lodged.”

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