The Hindu Business Line : EPF rate

This is with reference to "Interim EPF interest rate pegged at 8.5 pc" (Business Line, August 10). The assurance from the Labour Minister, Mr Sis Ram Ola, that the reduced interest rate on Provident Fund is only "interim" is but a pacification.

The provisions of the Employees Provident Fund Scheme clearly provide that the cost of interest accreditation should be met from the Interest Suspense Account (ISA) only.

The contributions received from the employers go not to the ISA but to the respective contribution account. Thus, the arrears due from the employers, even if collected till September, will go the contribution account and not to the ISA.

The Labour Ministry, instead of giving assurances should concentrate on increasing the return on investment of the EPFO.

C. Ramesh

Keeramangalam (TN)

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