The retirement fund body - EPFO is working on plans on a scheme to provide affordable housing to its over 5 crore subscribers. The housing will be made available on additional contribution of 10 per cent by them from their basic wages every month.
The idea was mooted by Labour Minister Oscar Fernandes during a function of Employees Provident Fund Organisation (EPFO) on Sunday.
The idea is to deduct 10 per cent of their basic wages in addition to the 12 per cent made by the employees towards the PF. The additional money collected will be used to provide them housing facility. EPFO has a corpus of around Rs 5 lakh crore and receives an incremental deposits of over Rs 60,000 crore every year.
At present, all workers covered under the EPFO schemes, pay 12 per cent of their basic wages toward PF contribution every month. The basic wages include basic pay and dearness allowance.
As per an official, EPFO had earlier constructed houses and provided to workers covered under its scheme. However, they did not have to make any additional contribution during the Sahib Singh Verma's tenure as Labour Minister.