Employers' contribution for PF of MSME workers should be increased in slabs, says an Expert
Updated: Dec 10, 2015 04:26:51pm
New Delhi, Dec 10 (KNN) The contribution of employers for the PF of workers, in the MSME sector, should be increased in slabs with the increase in size of the enterprise, said an Expert.
Today, the Chairman of Pension fund and regulatory and development authority chairman Hemant G Contractor said that the Government is working towards bringing the informal sector under the ambit of a pension scheme.
Industry body FISME (Federation of Indian Micro and Small & Medium Enterprises), an apex body for the MSMEs, said, “We have always been in favour of a universal social security system for the Indian workers.”
“While the cost of such a safety net should be borne for the micro enterprises by the Government under schemes like Atal Pension Yojana, the contribution of the employer should be increased in slabs with increase in size of the enterprise,” said a Senior Consultant with FISME.
Such a mechanism will be affordable to small and medium enterprises and will also ensure widest compliance, he said.
Currently, only three to four percent of employees in this sector have any kind of pension coverage which is also inadequate in terms of the escalating living and healthcare costs, he said.
Contractor said the government's Atal Pension Scheme had received a good response and it had been able to attract many individuals from the lower strata of society.
‘The government and the PFRDA were working towards developing pension schemes that were flexible, portable and transparent in terms of financial implications. He added that the sector needs to be regulated to safeguard the interest of the people from the lower income group, Contractor added. (KNN Bureau)
Today, the Chairman of Pension fund and regulatory and development authority chairman Hemant G Contractor said that the Government is working towards bringing the informal sector under the ambit of a pension scheme.
Industry body FISME (Federation of Indian Micro and Small & Medium Enterprises), an apex body for the MSMEs, said, “We have always been in favour of a universal social security system for the Indian workers.”
“While the cost of such a safety net should be borne for the micro enterprises by the Government under schemes like Atal Pension Yojana, the contribution of the employer should be increased in slabs with increase in size of the enterprise,” said a Senior Consultant with FISME.
Such a mechanism will be affordable to small and medium enterprises and will also ensure widest compliance, he said.
Currently, only three to four percent of employees in this sector have any kind of pension coverage which is also inadequate in terms of the escalating living and healthcare costs, he said.
Contractor said the government's Atal Pension Scheme had received a good response and it had been able to attract many individuals from the lower strata of society.
‘The government and the PFRDA were working towards developing pension schemes that were flexible, portable and transparent in terms of financial implications. He added that the sector needs to be regulated to safeguard the interest of the people from the lower income group, Contractor added. (KNN Bureau)
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