EPFO Board Rejects Proposal To Reduce Provident Fund Contribution To 10%
Employees and employers will have to continue transferring 12% of basic salary to the EPFO
The Central Board of Trustees (CBT) of retirement fund body EPFO turned down a proposal to reduce the mandatory contributions from workers and employers to 10 percent.
Presently, employees and employers contribute 12 percent of basic wages each towards Employees Provident Fund Scheme (EPF), Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance Scheme (EDLI).
The proposal to reduce the contributions by employers and employees to 10 percent of basic wages, including basic pay and dearness allowance, was listed on the agenda for meeting of the Employees' Provident Fund Organisation (EPFO), which was held on Saturday.
"The employer, employees and the government representatives expressed their reservations about it and they feel that it should be continued at 12 percent.
"It is their view and it has been recorded... now we will see... government will take a view on it," Labour Secretary M Sathiyavathy said.
Union Labour Minister Bandaru Dattatreya attended the meeting.
In the meeting, CBT approved hike in investment limit in exchange traded funds (ETFs) from the present 10 percent to 15 percent, Dattatreya told reporters.
CBT has decided to continue with SBI Mutual Fund and UTI Mutual Fund as ETF managers.