The Labour Ministry has reportedly proposed to cut provident fund contributions from both employers and employees from 12% to 10% of the income. The trustees of the Employees’ Provident Fund Organisation may approve the proposal on Saturday, PTI reported on Friday. Officials said the reduced contribution will increase take-home salaries and reduce the firm’s liabilities.
Trade Unions, however, are set to oppose the suggestion, which they said will dilute social security schemes. “We will oppose this proposal. This is not in workers interest,” EPFO trustee and Bharatiya Mazdoor Sangh leader PJ Banasure said. The Rashtriya Swayamsevak Sangh-affiliated Bharatiya Mazdoor Sangh threatened to stage a nationwide strike if the government goes ahead with its proposal.
“Corporate businessmen are benefiting from the proposal which hurts the interest of millions of workers. We will go for a nationwide strike if the government does not roll back its proposal,” BMS National Vice President Jagadiswara Rao said.
Employees and employers each contribute 12% of the salary towards the Employees Provident Fund Scheme, Employee Pension Scheme and Employee Deposit Linked Insurance Scheme.