New Delhi: The Employees Provident Fund Organisation on Tuesday put off a decision on fixing interest rates to be given to its four crore subscribers in 2006-07 for next month as it is yet to calculate the surplus funds available.
The Central Board of Trustees (CBT) of EPFO, which met in New Delhi, decided that details of income and funds would be re-examined to find out if any distributable surplus was available for giving interest, Labour Minister Oscar Fernandes told reporters.
"The issue would be taken up again in the ensuing CBT meeting on December 10, 2006," he said.
Though Fernandes did not disclose the Government's views on interest rates, union leaders who attended the meeting said the Government is planning to give 8.0 per cent interest rate.
The minister said a sub-committee of EPFO was looking into the matter and the Government would take a view only if there were difficulties in arriving at an agreed rate.
"It (calculating interest rate) is the prerogative of the Board. Going by the finances available, the Board will decide the matter. If we have some difficulties, then Government will take a view," Fernandes said.
He expressed hope that the Board would be able to fix interest rates by its next meeting.
Interest rate was pegged at 8.5 per cent last fiscal, which led to a deficit of Rs 365.89 crore in EPF.
“Hasubhai Dave, representative of RSS-affiliated Bharatiya Mazdoor Sangh in CBT, said his union asked for 9.5 per cent and in any case, not less than 9 per cent interest rate. It would not lead to any deficit in the Employees Provident Fund,” he argued.
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