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EPF interest rate not to be reduced: Verma

Contrary to earlier indications, Labour Minister Sahib Singh Verma on Saturday ruled out reducing interest rate on Employees Provident Fund.

"There is no move to touch the present rate of interest of 9.5 per cent," he told a press conference.

The new labour minister was quoted in interviews as having said that he was not averse to considering finance ministry's recommendations for lowering the interest rate.

Asked if the meeting of the Central Board of Trustees of EPF would consider lowering of the interest rate to nine per cent as suggested by the finance ministry in line with the decrease in interest on small scale savings and General Provident Fund, Verma said: "We have neither thought of it, nor is it under consideration".

The labour minister said the government intended to increase the existing benefits to the employees instead of curtailing them.

"We take care of the employees' interest and do not want to do anything against their interest," he said.

Stating that an unclaimed amount of Rs 300 billion was lying in the Provident Fund, the labour minister said the money would be utilised in various schemes meant for the welfare of workers.

Verma said the government was very serious about the plight of the unorganised sector and was trying to provide the workers in the area some social security.

"There can be some umbrella law to cover those persons," he said.

To a question regarding the proposed changes in the Industrial Disputes Act for exempting units employing 1000 workers from the requirement of getting permission from the government for rationalising the workforce, Verma said he would study the recommendations of the second National Labour Commission in this regard.

He also said that the government would strive hard to ensure that industrial units did not fall sick.

He said an atmosphere should be created so as to attract investments to boost industrial activities for generating additional employment.

"We are not in favour of such reforms which affect the interest of the workers," he said.

To another question, he said the government was considering the demand by the trade unions to make the Labour Panel report public.

"We are thinking of it. We may do it as early as possible," he said adding that he would have talks "with an open mind" with employees' and employers' representatives within a fortnight.

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