provident fund news: Govt urged to extend PF benefits to all organisations

The Indian Employees Federation has urged the government to relax the existing system of provident fund contributions of both employees and employers under the PM Garib Kalyan Yojana as it would not benefit the majority of employees.

ISF President Lohit Bhatia said in a letter to the Ministry of Labor and the Ministry of Finance, “The government should extend the PF benefit scheme to employee interest in all organizations.”

As a part of the Rs 1.7 lakh crore economic package, the government has said that if an employee’s 90% stake in it is less than 15000, then it will contribute 24% (12% of an employee and an employer). . every month.

According to ISF, the number of such establishments would be highly limited as the organized sector would follow the minimum wage in the states, which would exceed the said amount for all practical purposes.

The ISF said, “In an establishment, where even 1% of the employees will be above the salary of Rs. 15,000; all employees of such organization will be disqualified from such benefits, including those.”

This only brings us to a situation where the government appears to be supporting low-paid employers. “If lower pay is considered as a criterion for granting such financial relief, it may eventually bring more employers to cut salaries,” the ISF argued.

The Staff Federation further suggested that during these pandemic crises the government could avoid discrepancy and create the same criteria regardless of employer or organization.

This move will help save the job losses of millions of people employed in the organized sector, as the burden on employers is lessened, with the ISF saying that despite the substantial contributions, protecting the jobs and livelihoods of migrants / temporary workers is a necessity. Is today

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