New Delhi: In a bid to increase in-hand salaries, the Labour & Employment Ministry has proposed a reduction in worker’s contribution to the Employees’ Provident Fund (EPF), reports claimed.
The worker’s eligibility to get the benefit would depend on their age, gender or pay grade while the employer’s share will remain unchanged, the report published in a leading portal claimed.
“Flexibility has been proposed to be introduced in the (EPF and MP) Act to prescribe different rates of contribution for such period for any class of employee. No change in employer’s contribution has been proposed,” the ministry reportedly said. The proposal is said to be a part of the Employees’ Provident Fund and Miscellaneous Bill, 2019.
“To instill discipline in the working of assessing officers, the government has suggested a time period of two years for inspectors to conclude their inquiries, under this Act. Otherwise, inspectors will have to submit reasons in writing to the EPFO’s central provident fund commissioner,” the ministry added.
Currently, the mandated EPF contribution is 24 per cent of basic pay, divided equally between employers and employees. It is compulsory for employees to earn Rs 15,000 a month and for employers with at least 20 workers.