Question : RATE OF INTEREST OF EPF

(a) whether the Government is considering/has considered the proposal to reduce or increase the rate of interest on EPF;

(b) if so, the details thereof alongwith the assessment made therefor indicating the views expressed by Trade Unions thereon;

(c) the time by which a final decision is likely to be taken thereon;

(d) whether the Central Board of Trustees of the Employees Provident Fund Organisation has decided not to invest 5% of the four core subscribers money in the stock market; and

(e) if so, the details thereof and the final decision taken thereon?

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF LABOUR AND EMPLOYMENT (SHRI OSCAR FERNANDES)

(a) to (c): The rate of interest is decided by the Government in consultation with the Central Board of Trustees, Employees` Provident Fund. Government have not received so far any proposal from the Board on the rate of interest for the year 2006-07.

The Employees` representatives are against any reduction in the existing rate of interest.

(d) & (e): The recommendation of the Board on this issue has not yet been received by the Government.