New Delhi, Dec 23 (KNN) Government has proposed amendment in the Employees' Provident Funds and Miscellaneous Provisions Act 1952 to lower the threshold of number of employees from 20 to 10.

At present units employees more than 20 people are covered under the EPF. 

According to official sources, the changed economic scenario, employment pattern and social security needs of the workers, amendment to the existing provisions have become necessary.

The Ministry has released the proposed draft amendment for public comments.

Not everybody in Industry seems to be enamoured of the new proposal. The Micro, Small and Medium Enterprises (MSMEs) view the social security costs as burden which is becoming increasingly unbearable. 

According to the national MSME body Federation of Indian Micro Small and Medium Enterprises (FISME), “the minimum social security related costs to employers per worker works out to almost 30 per cent of basic wages”.

To bring down the social security costs cost and boost employment,  FISME has proposed that  a national social security authority agency should be set up to coordinate all types of social security related issues such as Medical Insurance, Provident Fund and Pension. 

It has asked the Government to reimburse the cost of social security benefits in a graded manner for the start-ups and MSMEs.

FISME has further suggested that MSME would be considered to have fully complied with the statutory obligations towards the social security dues once it has paid his dues to the NSA and ensured social security cards for all its employees. (KNN/AB)