The Central government has finally taken away the mandatory status of the Employees’ Provident Fund Organization (EPFO), without amending the EPF Act.

Perhaps nobody noticed it, but the Union cabinet on Wednesday changed EPFO’s status and communicated it, not through the labour ministry, as one would expect, but through a cabinet release on textiles sector.

“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the reforms to boost employment generation and exports in the Made-ups Sector (a sub sector of textiles and apparel)… Simplification of labour laws: Making employees’ contribution to EPF optional for employees earning less than Rs15,000 per month,” the cabinet statement said.

This means, employees earning less than Rs15,000 per month in the ‘Made-ups’ sector are no more required to pay the mandatory EPF (Employees’ Provident Fund) contributions from their salary.

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