New Delhi, Mar 10 (KNN) The lowering of number of employees above which the Provident Fund Act will be applicable has been criticized by many micro entrepreneurs. The micro units have been urging the government to exempt the micro enterprises from the elaborate paper work needed under the Act.

Reacting to this, Shankar Aggarwal, Secretary, Ministry of Labour & Employment, in a reply to question from KNN, said the number of employees have been reduced to 10 to get social securities to every employee in the country.

Further, KNN asked that despite the strong reservations from the MSMEs on the Small Factories Act, why Ministry still want to push the legislation without having further consultations.

The Small Factories Act has been passed by the Cabinet and is currently pending in the Parliament.

The MSMEs have said that the suggestions made by them have not been implemented in the act.

On this, the Secretary said that they have made “proper consultations” with the stakeholders before preparing the Act. (Watch Full Video) (KNN Bureau)