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The proposal of the government to reduce the contribution to the EPF from 12% to 10% has been defeated for the time being. In the meeting of the EPFO in which the representatives of government, employer and employee are there, this proposal mooted by the government was defeated with both the employer and employees representatives opposing it. The central trade unions representing the workers put up a strong stand, which the others could not object.

Now, the existing practice of 12% deduction both from employer and employee will continue. But the unions can not be complacent. Any minute, the government may try again to get the reduction implemented.