Update: Proposal has been declined by the EPFO board.
Employees Provident Fund Organisation’s trustees may approve a proposal today to reduce the mandatory Provident Fund contributions to 10 % for employers as well as employees.
Currently, employers and employees contribute 12 % of wages Employees Provident fund scheme. The proposal to reduce the provident fund contributions by employees and employers to 10 % of wages is listed on the agenda for meeting of the Employees’ Provident Fund Organisation Trustees scheduled today 27th May, 2017 in Pune.
The labour ministry received several representations stating that the move will reduce employers’ liability and leave more money with employees for day to day expenditure, which will be an advantage for economy.
Various trade unions have decided to oppose this proposal saying this move will adversely affect the social security scheme for the welfare of the employees.