The government is considering a proposal to relax the Employees’ Provident Fund Scheme so as to enable loss-making and sick PSUs to continue with their own PF Trusts, Labour Minister Bandaru Dattatreya said on Monday.
“Yes... The proposal is being examined in consultation with the Central Board of Trustees, Employees’ Provident Fund,” the minister replied to a question in Parliament.
He, however, said the government had 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.”
“Private companies did 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,” he added.