Budget proposal to cut women's PF contribution to 8% faces opposition

While trade unions argued that the move will hit the social security savings of workers, employers said it would not incentivise them to hire more women employees

The Budget proposal to lower the rate of contribution for women workers under the Employees’ Provident Fund Organisation (EPFO) to 8 per cent from 12 per cent faced opposition from both workers and employers on Wednesday.

“There were some apprehensions from both sides. We will take a call on the issue,” Labour and Employment Ministry Secretary M Sathiyavathy told reporters after attending a central board of trustees meeting of the retirement fund body, chaired by Labour and Employment Minister Santosh Gangwar here.
 

The labour ministry will now discuss the issue with its finance counterpart.

Finance Minister Arun Jaitley in his Budget 2018-19 speech