The Central Board of Trustees of the Employee Provident Fund Organisation rejected the proposal to cut PF by 2%, from 12% to 10%. The idea had been mooted last week, but was strongly opposed by representatives of the government and unions, among others.
Union Labour Minister Bandaru Dattatreya had also attended the CBT meeting.
Labour Secretary M Sathiyavathy said, “The employer, employees and the government representatives expressed their reservations about it and they feel that it should be continued at 12%,” PTI reported. “It is their view and it has been recorded... now we will see... government will take a view on it,” said.
Officials had said the reduced contribution will increase take-home salaries and reduce the firm’s liabilities. Currently, employees and employers each contribute 12% of the salary towards the Employees Provident Fund Scheme, Employee Pension Scheme and Employee Deposit Linked Insurance Scheme.
Trade Unions had put down the idea, 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 had said. The Rashtriya Swayamsevak Sangh-affiliated Bharatiya Mazdoor Sangh had also threatened to stage a nationwide strike if the government went 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 had said.
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