The retirement fund body Employees’ Provident Fund Organisation (EPFO) is working on plans to provide low-cost housing to its five crore subscribers.
The Central Board of Trustees (CBT), EPFO’s highest decision making body, will consider the report of the expert committee on the same in a meeting scheduled for next month.
A committee set up by the EPFO last year had recommended a scheme to facilitate subscribers to buy houses where they will be allowed to give advance from their Provident Fund (PF) accumulation also pledge their future PF contribution as EMI (equated monthly instalment) payments.
To build low-cost houses, the government will collaborate with public sector banks, housing finance companies, state-owned construction firms like NBCC and there will be a tripartite agreement with member, bank/housing agency and EPFO.
The panel has suggested this scheme for low-income formal workers, who are EPFO subscribers and could not buy a house during their entire service period. At present, there are over 70% EPFO subscribers whose basic wages are less than Rs 15,000 per month.
Labour minister Bandaru Dattatreya had said in the Lok Sabha about plan to provide housing scheme for EPFO subscribers.