The labour ministry has already asked the EPFO for data on job losses and salary cuts
NEW DELHI: The government, keen to prevent job cuts, may soon pay both the employer and employee’s share of provident fund contributions at more companies.
An announcement on this could be part of an economic package that is in the works, a top government official told ET.
As part of a ₹1.7 lakh crore package announced by finance minister Nirmala Sitharaman on March 26, the government had said it would pay the entire provident fund contribution of those who earn less than ₹15,000 per month in companies that employ up to 100 people, where 90% draw salaries of less than ₹15,000 per month.
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This was for three months and entailed a total estimated cost of ₹4,800 crore. The Employees’ Provident Fund Organisation has six crore subscribers.
The current proposal will seek to relax the 100 workers’ limit and the stipulation that 90% of workers should have drawn a salary of ₹15,000 per month, the official said.
“…this cap of 100 employees may go altogether or substantially raised to cover more and more establishments,” the official, aware of the deliberations, told ET.
Source: Economic Times
