Trade unions are pressing Labour Ministry to urgently convene the meeting of EPFO's apex decision making body CBT to decide interest rate on PF deposits for 2013-14 for over 5 crore subscribers.
"Some unionists who are also members of Central Board of Trustees (CBT) have written to the Labour Minister to convene a meeting of trustee to take important decision like fixing interest rate on PF deposits. I will also write to him on the issue to call a meet at the earliest," Secretary Hind Mazdoor Sabha A D Nagpal said.
According to Nagpal who is also a trustee of the Employees' Provident Fund Organisation (EPFO), although the CBT was reconstituted in May, no meeting has been held so far.
He said the meeting of the trustees should be called at the earliest to reconstitute important sub-committees including Finance and Investment Committee (FIC) which vets the proposals like interest rate on PF deposits and puts them before CBT for final decision.
Since the new CBT has not met after its reconstitution in May, no sub-committees could be reconstituted. The term of the sub-committees is co-terminus with the CBT.
An EPFO official said that CBT would have to meet at least twice before deciding interest rate on PF deposits for the current fiscal.
In the first meeting, the trustee would constitute FIC and in the second meeting they would decide on interest rate based on the recommendations of the committee looking at the proposal.
The proposal for the interest rate is prepared by the EPFO which is vetted by the FIC and goes to CBT for final consideration. Once approved by the CBT, the decision on interest rate requires concurrence of Finance Ministry which has to notify it.
Only after notification, the interest is credited into the accounts of subscribers.
As per the norms, EPFO is expected to announce rate of interest on PF deposits before the beginning of a financial year. However, for the past few years, there has been delay in announcement of the rates.
EPFO had provided 8.5 per cent interest rate for 2012-13, up from 8.25 per cent in 2011-12.