September 17: Finance Minister Janardan Sharma has advised the Employees Provident Fund (EPF) to focus on investment-oriented projects in the productive sector.
The finance minister made such remarks while inaugurating the 60th anniversary celebration programme of the fund on Thursday, September 17.
“The provident fund should be used to invest in the productive sectors, which will help in building national capital,” he said, adding, “Investment in the manufacturing sector creates jobs and helps reduce trade deficit.”
He stressed on the need to expand the range of profits by making arrangements to invest the bonus in the productive sector. Minister Sharma said that the fund should focus on good corporate governance and make the working system more technology friendly and create a conducive environment for employees.
During the programme, the EPF informed that the total investment of the provident fund has reached Rs 436 billion as of Fiscal Year 2077/78. At present, the fund has a balance of Rs 398 billion. The pension fund has Rs 1.58 billion and the liability of the fund is Rs 4.67 billion.
Under the social security scheme, the fund provides maternity expenses for employees at the rate of Rs 7,500. Similarly, it provides Rs 200,000 in case of accidental death or complete mutilation during the service period of the employees.
In case of death during the service period of the employees, a total sum of Rs 40,000 is provided to the heir. Similarly, the fund has been reimbursing Rs 100,000 for general medical treatment and up to Rs 1 million for fatal diseases.
Prior to the establishment of the fund on September 4, 2019, it was operated in the name of Army Provident Fund in 1991, Civil Provident Fund in 2001 and Employees Provident Fund Department in 2017.