The Labour Ministry has directed the EPFO to take necessary action to reduce the employers’ contribution to the EPF from 12% to 10%. The directive is only to favour the employers. In fact, what the EPFO suggested to government was to reduce the employees’contribution from 12% to 10% and keep the 12% as it is for employer. But the government wanted to favour employers by reducing their contribution. Realising that there will be a backlash from the people, the media and the workers, government has now directed that both the contribution should be reduced to !0%. What this means is that the EPF contribution will be reduced by 4% which will be a big loss to the workers.

CITU and other Central trade Unions have condemned this anti-worker move of the Government. The government should be compelled to back-tract from this anti-labour decision.