The government is considering a proposal to relax the Employees’ Provident Fund Scheme to enable loss-making and sick PSUs to continue with their own PF Trusts, Parliament was informed today.
“Yes... The proposal is being examined in consultation with the Central Board of Trustees, Employees’ Provident Fund,” Labour Minister Bandaru Dattatreya replied to a question in Parliament on whether the government is looking to relax/amend the Employees’ Provident Fund Scheme to enable loss-making and sick PSUs to continue to run own PF Trusts.
The minister, however, said the government has not identified any such sick or loss-making PSUs.
On any similar relaxation for private firms, he said, “No... Provident Fund Trusts of exempted establishments are custodian of the hard-earned money of the workers which needs to be protected.”
Dattatreya further said, “Private companies do not have the sovereign guarantee behind them as enjoyed by the public sector undertakings of both the central government and the state governments. Therefore, the proposed amendment is not intended to extend this advantage to private companies, so as to protect the interest of the workers.”