EPFO may slash PF contributions to 10 per cent
What is in news?
The Central Board of Trustees (CBT) of Employees’ Provident Fund Organisation (EPFO) is likely to consider a proposal to reduce the share of mandatory contribution by employees and employers to 10 per cent each from 12 per cent of the income as of now
Also, the CBT is likely to discuss raising the investment limit in Exchange Traded Funds (ETFs) to 15 per cent from 10 per cent
Trade unions have decided to oppose the proposal saying this will dilute these social security schemes
The Employees’ Provident Fund Organisation, is an Organization tasked to assist the Central Board of Trustees, a statutory body formed by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of theMinistry of Labour and Employment, Government of India.
EPFO assists the Central Board in administering a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India.
It is also the nodal agency for implementing Bilateral Social Security Agreements with other countries on a reciprocal basis. The schemes cover Indian workers as well as International workers (for countries with which bilateral agreements have been signed.
Exchange traded fund:
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.
An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day.
Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features