EPFO may reduce PF contributions to 10% : The Tribune India

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EPFO may reduce PF contributions to 10%

NEW DELHI:The Union government has directed the Central Board of Trustees (CBT) of EPFO to include lowering the employer's share of contribution to Employees Provident Fund from the present 12% to 10% as an agenda item in its tomorrow's meeting, raising hackles of workers' groups.



Ravi S. Singh

Tribune News Service

New Delhi, May 26

The Union government has directed the Central Board of Trustees (CBT) of EPFO to include lowering the employer's share of contribution to Employees Provident Fund from the present 12% to 10% as an agenda item in its tomorrow's meeting, raising hackles of workers' groups.

Already beleaguered by jibes of being "suit-boot ki sarkar" and "pro-business" from the Opposition spectrum, the government has invited fresh spell of pejoratives from the workers' lobby on account of the move.

The workers' lobby is apprehensive that the government is determined to lower the employers' contribution and the deliberation in the CBT was a mere hogwash. 

A communication from the Ministry of Labour and Employment to Central Provident Fund Commissioner, EPFO, accessed by The Tribune shows that the CBT was left with no option.

What has further got the goat of the workers’ lobby is the government’s stated rationale behind the move.

“As you know, there have been demands from various quarters on many occasions to review the present rate of EPF contributions and placing it on a par with other social security schemes, such as, National Pension System (NPS, etc)”, the letter said.

The CITU and AITU, among others, have condemned the government’s move. They have urged all trade unions and workers to unitedly protest it.

CITU chief and CPM MP Tapan Sen said: “Modi government’s fourth year begins with further intensifying the attacks on rights of the working people.”

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