FASII: EPF rate surely going to effect SMEs as their wage surely going to increase
Author(s): City Air NewsSitting: Oscar Fernandez (Minister of Labour and Road Transport ), K Suresh (Minister of State for Labour), Gauri Kumar (Secretary, Ministry of Labour), Standing: K K Jalan (Chief Provident Fund Commissioner of...
cityairnews
Feb 7, 2014 12:30
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Sitting: Oscar Fernandez (Minister of Labour and Road Transport ), K Suresh (Minister of State for Labour), Gauri Kumar (Secretary, Ministry of Labour), Standing: K K Jalan (Chief Provident Fund Commissioner of India) Badish Jindal (National President, FASII), Raman Panday (INTUC) R K Tripathi (HMS) and Ashok Singh (Trade Union Congress).
Ludhiana, February 7, 2014: Even after the strong opposition of FASII & other Employer Organisations the Central Board of Trustees of Employees Provident Fund approved the enhancement of Maximum cap of EPF from Rs.6500 to Rs.15000. This enhancement has come after 12 years. Now all the employers who are covered under EPF will have to deposit the 12% EPF for all the employees having a wage or salary upto Rs.15000.
Earlier when the maximum cap was Rs.6500 only 10% to 15% employees were covered as the employees getting more than Rs.6500 were exempted from EPF and these days all the skill workers are getting more than Rs.6500. But now with an increase of Rs.15000 almost 70% to 80% employees will come into coverage. The Ministry of Finance has already approved this move on January 23 and this was to be approved by the Central Board of Trustees for notification. The government has also restricted their subsidy in EPF contribution only upto the maximum salary Rs.15000.
The government has given an additional allocation of Rs.1250 crores for an enhancement in minimum pension from Rs.350 to Rs.1000 per month. On request of FASII the Board reduced the administration charges for employers from 1.1% to .80%. The FASII gave a strong reason that the income from administration charges is Rs.3564 crores whereas the expenditure is merely Rs.1487 crores and there is already a deposit if more than Rs.10500 crore in administration charges account. The committee considered the demand of FASII and reduced the charges. The FASII also demanded that a period of one year should be given to the employers as after the implementation of new rate there may be chances of conflict between the department and employers so a specified period of implementation requires to be given and during this period no damages or penal interests should be charged.
This new EPF rate is surely going to effect the SMEs as their wage is surely going to increase by around 6 to 8%, said the FASII National President, Badish Jindal in a statement here on Friday.// ludhiana news online, ludhiana news in English, ludhiana news, ludhiana current news, ludhiana news live, Ludhiana breaking news, Ludhiana headlines, Ludhiana latest news, punjab news, india news, punjab news live, punjab news online, punjab news, punjab news headlines, punjab breaking news, india news, punjab news,
