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Tag Archives: EPF Contribution

CITU opposes limit on contributions to EPF

31 Saturday May 2014

Posted by VAN NAMBOODIRI in General

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CITU, EPF Contribution

CITU Press Statement dated 31-05-2014.

It is reported in the media, that a circular has been issued by EPFO, stating that employers paying Provident Contributions to their employees can limit their contributions to the salary limit of Rs.6500 per month. It is reported that the clarification is on the basis of a Supreme Court judgment in 2011. What prompted the EPFO to issue a circular now after such a long time is not known. CITU demands that this should no way result in curtailing the existing benefits in the matter of PF contribution of employer which the employees in various private and public sector enterprises are now getting. In this context, CITU wants to point out that the Govt. has not yet implemented the decision of CBT to increase the salary limit to Rs.15,000 per month for PF contribution which was to be implemented from 1st April 2014. The decision to increase the wage ceiling and and also to increase the minimum pension to Rs.1000 per month was unanimously taken by Central Board of Trustees and approved by Cabinet in February 2014. CITU while demanding immediate implementation of increased ceiling and minimum pension of Rs.1000, also demands that the circular of EPFO should not lead to curtailment of existing benefits to any worker.

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India Inc against merger of Pay and Allowances for EPF Contribution

10 Thursday Apr 2014

Posted by VAN NAMBOODIRI in AIBDPA - BSNL DOT Pensioners, Neo-liberal policy, TU News - India

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Allowances, EPF Contribution, EPFO

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.

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