Employees’ Provident Fund Organisation (EPFO) will hire a consultant to work out a low-cost housing scheme for its subscribers. The proposal is likely to come up for discussion in the Central Board of Trustees (CBT) meeting next month.
“A private firm will soon be hired to frame a housing scheme for subscribers of the Employees’ Provident Fund Organisation. The housing scheme proposal is under consideration of the labour ministry,” labour minister Bandaru Dattatreya said.
He refrained from providing a timeline for finalising the scheme. The minister said, “We are working on it. We don’t have the expertise in this area.”
Earlier this month, Dattatreya had said in Lok Sabha that the government is exploring the possibility for providing a low-cost housing scheme for subscribers of EPFO.
Last year in September, the proposal was on the agenda of CBT meeting. The report of an expert committee was also put up for deliberations.
The committee had unanimously recommended a scheme to facilitate subscribers to buy houses where they will get an advance from their provident fund accumulation and will be allowed to pledge their future provident fund contribution as EMI payment.
The scheme had proposed a tripartite agreement with member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.
The panel had suggested that the subscribers will purchase a dwelling unit with loans from bank or housing finance companies. However, the panel had suggested this scheme for those EPFO subscribers who are low income formal workers and could not buy a house during their entire service period.