THEN ……….
Employee Provident Fund Trustees decides to pay interest of 9.5% on the provident fund deposits for 2010-11, the decision which will benefit around 4.71 crore employees. This decision has to be ratified by Finance Ministry.
In the meeting held on 15th Feb-2011 EPFO trustees decided for payment of interest to the tune of 9.5% and later reported that they have given all the clarifications sought by the finance ministry to increase the rate of interest by one percent. They are also hopeful that the ministry will soon give its approval and come out with a notification.
The board of trustees of EPFO is the highest policy making body of the Employees Provident Fund Organization. The labour Minister Mr.Mallikarjun Kharge had also attended the meeting.
The other important policy decision taken by the board of trustees is not invest the part of the Employees provident fund in the stock market.
Earlier finance ministry mooted out this proposal which has not been rejected by board of trustees of EPFO.
The EPFO is a funding source for the government. The three schemes run by it —- the Employees Provident Fund, the Employees Pension Fund and the Employees Deposit Linked Insurance Fund — together have a corpus of over Rs250,000 crore (in unexempted schemes) and average collections of over Rs40,000 crore a year.
The corpus is predominantly invested in fixed income securities issued by the government and its entities. The investment pattern is 25% in government securities, 15% in state government bonds, 30% in public sector bonds.
The remaining 30% goes into any of the three categories as decided by the EPFO’s trustees.
Investment in private sector bonds is restricted to 10% of the total flows during the year. Mutual fund investments are restricted to gilt funds.
The return on the schemes is fixed by the trustees and stands at 8.5%, though it’s been upped to 9.5% for the year 2009-10 as a one-off payout.
However, there is no proposal as on date to raise the rate of interest payable on contributions made by Central Government Employees in General Provident Fund Scheme (GPF), CPF, AISPF, STATE RLY PF, GPF(DEFENCE).
Source: The Times of India
NOW …….
Union Minister for Labour and Employment M Mallikarjun Kharge today said the government was looking at further hiking the interest rate on Provident Fund from the present 9.5 per cent.
"We are contemplating further increasing the interest rate on Provident Fund from the present 9.5 per cent. The interest rate on EPF (Employees Provident Fund) was increased to 9.5 per cent recently.
"This time also we want to give more to the employees. We are working towards it", he said while inaugurating the Southern Zonal Office of Director General of Mines Safety here.
Source : PTI
OUR VIEW:-
Raising the rate of interest for Employees Provident Fund for the year 2010-2011 from 8.5% to 9.5% is being approved by the Finance Ministry whereas the rate of interest for General Provident Fund for the current Financial Year 2010-2011 remained the same at 8%. The Finance Ministry is requested to look into the matter and arrange to enhance the rate of interst for General Provident Fund also.
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Expected Dearness Allowance from July, 2011
The Government has released the price index for the last three months.
Jan-11 188 2127 177.25 61.49 53.12 53
Feb-11 185 2142 178.50 62.74 54.20 54
Mar-11 185 2157 179.75 63.99 55.28 55
As per this, an increase from 51% to 55% is expected till March 2011. It may be increased as we wait for the next three months calculation on Index prices. If it continues to be this, the Dearness Allowance may be 56% to 57%.
If the Government successfully maintained the price increase and the AICPIN falls, the Dearness Allowance may be restricted to 54% or 55%.
On the price raise of petrol and diesel or cooking gas, automatically the price index also increase, in this condition the Dearness Allowance may be increased upto 57% to 58%.
OUR VIEW:- Everybody wants the Government makes strict actions to maintain the prices of essential commodities rather than increasing Dearness Allowance which in no way helps anyone.
Employee Provident Fund Trustees decides to pay interest of 9.5% on the provident fund deposits for 2010-11, the decision which will benefit around 4.71 crore employees. This decision has to be ratified by Finance Ministry.
In the meeting held on 15th Feb-2011 EPFO trustees decided for payment of interest to the tune of 9.5% and later reported that they have given all the clarifications sought by the finance ministry to increase the rate of interest by one percent. They are also hopeful that the ministry will soon give its approval and come out with a notification.
The board of trustees of EPFO is the highest policy making body of the Employees Provident Fund Organization. The labour Minister Mr.Mallikarjun Kharge had also attended the meeting.
The other important policy decision taken by the board of trustees is not invest the part of the Employees provident fund in the stock market.
Earlier finance ministry mooted out this proposal which has not been rejected by board of trustees of EPFO.
The EPFO is a funding source for the government. The three schemes run by it —- the Employees Provident Fund, the Employees Pension Fund and the Employees Deposit Linked Insurance Fund — together have a corpus of over Rs250,000 crore (in unexempted schemes) and average collections of over Rs40,000 crore a year.
The corpus is predominantly invested in fixed income securities issued by the government and its entities. The investment pattern is 25% in government securities, 15% in state government bonds, 30% in public sector bonds.
The remaining 30% goes into any of the three categories as decided by the EPFO’s trustees.
Investment in private sector bonds is restricted to 10% of the total flows during the year. Mutual fund investments are restricted to gilt funds.
The return on the schemes is fixed by the trustees and stands at 8.5%, though it’s been upped to 9.5% for the year 2009-10 as a one-off payout.
However, there is no proposal as on date to raise the rate of interest payable on contributions made by Central Government Employees in General Provident Fund Scheme (GPF), CPF, AISPF, STATE RLY PF, GPF(DEFENCE).
Source: The Times of India
NOW …….
Union Minister for Labour and Employment M Mallikarjun Kharge today said the government was looking at further hiking the interest rate on Provident Fund from the present 9.5 per cent.
"We are contemplating further increasing the interest rate on Provident Fund from the present 9.5 per cent. The interest rate on EPF (Employees Provident Fund) was increased to 9.5 per cent recently.
"This time also we want to give more to the employees. We are working towards it", he said while inaugurating the Southern Zonal Office of Director General of Mines Safety here.
Source : PTI
OUR VIEW:-
Raising the rate of interest for Employees Provident Fund for the year 2010-2011 from 8.5% to 9.5% is being approved by the Finance Ministry whereas the rate of interest for General Provident Fund for the current Financial Year 2010-2011 remained the same at 8%. The Finance Ministry is requested to look into the matter and arrange to enhance the rate of interst for General Provident Fund also.
*************************************************************************
Expected Dearness Allowance from July, 2011
The Government has released the price index for the last three months.
Jan-11 188 2127 177.25 61.49 53.12 53
Feb-11 185 2142 178.50 62.74 54.20 54
Mar-11 185 2157 179.75 63.99 55.28 55
As per this, an increase from 51% to 55% is expected till March 2011. It may be increased as we wait for the next three months calculation on Index prices. If it continues to be this, the Dearness Allowance may be 56% to 57%.
If the Government successfully maintained the price increase and the AICPIN falls, the Dearness Allowance may be restricted to 54% or 55%.
On the price raise of petrol and diesel or cooking gas, automatically the price index also increase, in this condition the Dearness Allowance may be increased upto 57% to 58%.
OUR VIEW:- Everybody wants the Government makes strict actions to maintain the prices of essential commodities rather than increasing Dearness Allowance which in no way helps anyone.
