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Govt urged to extend PF benefits to all organisations

The Indian Staffing Federation has urged government relax the existing provision of reimbursing provident fund contribution of both employee and employer under the PM Garib Kalyan Yojana as it would not benefit most of the employees.


"Government must extend the PF benefit scheme to all organizations irrespective of employee headcounts in an organisation," ISF president Lohit Bhatia said in a letter written to labour ministry and finance ministry.


As part of the of Rs 1.7 lakh crore economic package, government has said it will contribute 24% (12% each of an employee and an employer) if 90% of employee in an establishment with not more than 100 workers get less than Rs 15000 per month.


According to ISF, the number of such establishment will be highly limited as the organised sector will be following the minimum wages across states, which will be higher than the said amount for all practical purposes.


"In an establishment, where even 1% employees will be above the salary of Rs 15000; that will disqualify all the employees of such organisation from such benefit, including ones that were deserving," ISF said.


This only brings to the situation where government is seen supporting the employers who pay low salaries. "If low salary is considered as a criterion for extending such financial reliefs, then it might also bring more employers to cut salaries eventually," ISF argued.


The staffing federation, further, suggested that during these pandemic crisis the government could avoid discrepancy and create similar criteria irrespective of employer or organisation.


This one step will help save job losses of the millions employed in the organized sector, as the burden is lowered on the employers, ISF said, adding that while the contribution will be substantial, protecting jobs and livelihoods of migrants/temporary workers are a necessity today.

Source : ET