The retirement fund body Employees’ Provident Fund Organisation (EPFO) has decided to take up the issue of optional EPF for employees in apparel and made-ups sector at the trustees meeting scheduled to be held on March 30. A proposal to amend the EPF & MP Act for making EPF contribution optional for those earning less than Rs. 15,000 per month will be discussed during the meet.
Earlier last year in June, the Centre brought a package making EPF optional for the textile and apparel sector and was later extended to made-ups also in December 2016. Despite it being a Cabinet decision, it could not be implemented without amending the EPF & MP Act 1952.
In the present legal framework, the employees as well as employers contribute 12 per cent each towards mandatory contributions towards social security scheme – EPF, EPS and EDLI – run by EPFO.
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Once approved by the Central Board of Trustees (CBT), the proposal would have to go through the floor test in both the Houses of Parliament.
Commenting on the proposal, All India Trade Union Congress Secretary D L Sachdev said, “All central trade unions will oppose this proposal because it would start a new practice of making EPF contributions optional for a set of categories of employees. This will set a wrong precedent.”
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