Centre to soon merge social security contributions by small firms: Report

Currently, the companies have to make separate payments towards the Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC)

The Centre may soon do away with separate contributions towards provident funds, pensions and insurance for small enterprises, allowing them to make a single payment towards the social security of their employees, as reported by Economic Times (ET). This is expected to boost compliance among small firms. 

Currently, companies have to make separate payments towards the Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC). 

An expert committee will finalise the plan. The contribution may be kept at 10-12 per cent of the wages. This will be applicable to an organisation with 10-20 employees, ET report added. 

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