News: Smaller firms may be allowed to lower PF cut

Employee Assistance Programs

Smaller firms may be allowed to lower PF cut

The move is being discussed following a government proposal to bring all companies employing between 10 and 20 workers under the ambit of the Employees’ Provident Fund Organisation (EPFO) to extend the social security net to hundreds of thousands of employees working in small factories.
The labour ministry may allow small companies with fewer than 20 workers to deduct only 9% of salaries towards provident fund (PF) instead of the mandatory 12%, seeking to reduce the burden on both employees and employers, who have to make a matching contribution. The move is being discussed following a government proposal to bring all companies employing between 10 and 20 workers under the ambit of the Employees’ Provident Fund Organisation (EPFO) to extend the social security net to hundreds of thousands of employees working in small factories. Currently, only companies with more than 20 workers are under the EPFO’s jurisdiction.
 
Read Livemint's full report here.
Read full story

Topics: Employee Assistance Programs, #National, #Updates

Did you find this story helpful?

Author

QUICK POLL

For how long do you think the current pandemic situation will impact the world of work?

On News Stands Now
q_auto,f_auto/v1583398016/mag-march-2020.png

Subscribe now to the All New People Matters in both Print and Digital for 3 years.

.

Subscribe
And Save 59%

Subscribe now

How likely are you to recommend our content to a friend or colleague?

01
10
Selected Score :