(FE)
Driven by a policy to extend social security benefits to workers who are currently outside its ambit, the government is considering lowering employers’ liability towards Employees’ Provident Fund (EPF) in the construction sector to 10% of the basic pay from 12% now.
Of an estimated over 3 crore workers in the building and construction sector, around just 15 lakh have EPF cover at present, as most builders, especially the smaller ones, keep fewer than 20 people on their payrolls to avoid the extra cost. It is mandatory for units employing 20 or more to provide EPF benefit to workers.
The labour ministry feels that by reducing the quantum of employer’s contribution, it can persuade more building/construction units to extend the EPF benefits to workers. The construction industry has been pitching for this relaxation, contending that the current level of EPF liability was too onerous for it, especially since the units already pay 1% of the construction cost to the government as labour cess.
