Govt wants to reduce PF contribution to increase take-home salary

Trade unions oppose saying it will weaken the social protection of employees

The labour ministry has proposed to reduce the employer’s contribution to the Employees’ Provident Fund (EPF) from 12 per cent to 10 per cent. The proposal, which will be opposed by trade unions, will come up for approval in the meeting of the Central Board of Trustees (CBT) on Saturday.

Around 50 million employees in the country receive provident fund contributions. The move, according to the labour ministry, will increase the take-home salary of employees. But trade unions opposing the move termed it an attack on social security.

According to the agenda paper of the meeting, the Employees’ Provident Fund Organisation’s (EPFO’s)