New Delhi: Today is a very special day for the employed people. The members of the Employees Provident Fund, or EPFO, are expected to get double the happiness today. The Employees Provident Fund Organization (EPFO) is scheduled to meet with the Central Board of Trustees in Hyderabad today. In the meeting, EPFO can discuss two issues. It may be discussed in the meeting to double the pension of pensioners and how much interest should be paid on the PF for the last financial year.
Pension will be Doubled!
If sources are to be believed, it may be considered to increase the minimum pension from Rs 1000 to Rs 2000 in the meeting. Apart from this, it can also be agreed to keep the interest rate on PF 8.65 per cent for the financial year 2018-19. Both these decisions will benefit the pension and PF holders. In the meeting, if the proposal to increase the minimum pension from Rs 1 thousand to 2 thousand is approved by the board, then it will be sent to the finance ministry for approval.
Government is ready for double pension
According to the news published on website Zee Business, the government has already talked to the EPFO about the increase in minimum pension. Labor Minister Santosh Kumar Gangwar had already agreed to double the pension. The government is also in favor of increasing the pension to Rs 2000. However, the EPFO refused to increase the minimum pension, saying that there was no surplus money. However, it is also being reviewed again. If the CBT approves this then it will surely be a big decision.
Why will you get more interest?
The EPFO had recommended raising the interest rates on PF from 8.55 per cent to 8.65 per cent for the financial year 2018-2019. According to a senior official, even after paying more interest on the PF, the EPFO still has more than Rs 150 crore in cash. Losses due to weak interest rates have already been covered. Therefore, there is no problem in paying more interest to the account holders. However, the Finance Ministry questioned the decision to give 8.65 per cent interest and asked to review it again. Today it can be kept in the meeting to be reviewed again.
What is the concern of the Finance Ministry?
The Finance Ministry is worried that it will not be possible for banks to pay attractive interest rates by paying more interest on PF. This will directly affect the economy. The Finance Ministry’s objection comes at a time when banks are avoiding reducing interest rates on loans to raise funds. After the approval of Finance Minister Nirmala Sitharaman, in the memorandum submitted to the Ministry of Labor, it was said that the fund has suffered due to investment in IL&FS. In such a situation, the Ministry of Labor is advised to reconsider the interest rate of PF for the financial year 2018-19.