Labour Minister Bandaru Dattathreya stated in a written reply to the Rajya Sabha yesterday, 9th December 2015, that there is no government guarantee for the stock investments being made by the EPFO. The reply stated that ” The government has not provided any guarantee for such investments in the stock market as investment in such instruments are subject to market movements”.

This makes clear what the employees were telling all along. There is no guarantee for the hard earned Provident Funds of the workers that is put in the stock market by the EPFO. The unions are completely opposed to put the Provident Fund amounts in the stock market. The Central Trade Unions should compel the EPFO  to drop its decision to invest in stock markets.

There is every justification for increasing the interest rate of EPF since the earnings have increased. Last year, the interest was 8.75%. The unions have demanded for higher interest and according to the Labour minister, there is chance for an increase. The EPFO should announce the increase.