Modi government plans to introduce Provident Fund to unorganised sector workers

The Centre has proposed to introduce Provident Fund (PF) for all sections of workers including domestic helps and other self-employed people like drivers, hawkers, vendors etc. 

Published: 28th August 2019 03:34 AM  |   Last Updated: 28th August 2019 09:18 AM   |  A+A-

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For representational purposes (File Photo | PTI)

By Express News Service

NEW DELHI: The Centre has proposed to introduce Provident Fund (PF) for all sections of workers including domestic helps and other self-employed people like drivers, hawkers, vendors etc. 

To facilitate this, the labour ministry is planning to amend the Employees’ Provident Fund and Miscellaneous Provident Act. The amendment will empower the Centre to notify the rate and duration of PF contributions for all classes of employees.

The move comes weeks after PM Narendra Modi launched the Pradhan Mantri Shram Yogi Maan Dhan.

The schemes provide a pension for workers from the unorganised sector.

Elaborating on the proposal, a ministry official said the aim of the amendment is to allow rates of contribution lesser than the mandatory 12% for certain class of employees.

“In case needed, the employers’ exemption from any liability will also be taken care of,” he said.

The amendment will ensure that the Centre fixes the rates for many unorganised sectors and will benefit domestic helps in particular.

“The government will also decide, through a notification, whether the employer is liable to contribute or not,” the official said.

The ministry has prepared a draft of the EPF and MP (Amendment) Bill, 2019 and sought suggestions on the changes. All stakeholders will be allowed to give their suggestions on the proposed changes till September 22.

“With the change in the industrial and economic scenario of the country leading to increased mobility of labour and outsourcing of services, need has been felt for introducing some amendments in the provisions of the Act,” the proposed draft amendment said.

According to the official, the subscribers of the amended Bill may be given a choice to switch between the EPFO and the National Pension Scheme. 

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