The attitude of India Inc is made clear in the editorial of the “Economic Times” dated 10th April. It has strongly supported the decision of the Central government is rejecting the proposal of the EPF Organisation to add the DA and other allowances for calculating the contribution to the EPF both by the employee and the employer.
The proposal of the EPFO will benefit the employee by increase in his EPF and also pension. What has irked India Inc is that they will have to pay increased contribution by the employers. In fact, the employers have converted a good part of the salary in to allowances to deny contribution to the EPF.
We strongly condemn the decision of the government in rejecting the recommendation of the EPFO, which is only to favour the corporates etc. We demand the government to approve the decision of the EPFO to include the allowances also in calculating the contribution to the EPF.