prabhat khabar epaper 02/10/2016

The centre is reconsidering a plan to widen the social security net for workers by bringing more factories under the provident fund coverage.

The Cabinet Secretariat has pointed out a few contradictions in the Labour Ministry’s proposal to amend the Employees’ Provident Fund and Miscellaneous Provisions Act of 1952, senior labour ministry officials said.

The Labour Ministry had proposed to bring down the threshold limit for coverage of firms under the Employees’ Provident Fund (EPF) to factories with at least 10 workers. At present, the EPF Act is applicable to factories with minimum 20 workers.

Senior labour ministry officials said the proposal to decrease the threshold limit was found to be contradictory with another proposal in the Act to give an option to workers to switch to the National Pension System (NPS), managed by the Pension Fund Regulatory and Development Authority.

“It was observed that on one hand, there is a proposal to bring larger number of people under the EPF fold and on other hand, there is another proposal to give workers an option to opt out of EPFO and move to NPS. This is contradictory and needs a re-think,” the official said, on conditions of anonymity.

prabhat khabar epaper 02/10/2016 :