Budget 2020

Govt. to pay new recruits’ PF money

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The subsidy will continue for three years; PF deduction for women down to 8%

The Centre will contribute 12% of the wages of new employees under the Employees Provident Fund Organisation across sectors for the next three years.

Making the announcement while presenting the 2018-19 Union Budget, Finance Minister Arun Jaitley said creating job opportunities and facilitating employment generation had been at the core of the National Democratic Alliance government.

The Centre also made amendments to the provisions of Employees Provident Fund and Miscellaneous Provisions Act to reduce women employees’ contribution to 8% for first three years of their employment against the existing 12% or 10% with no change in employers’ contribution.

This has been done to incentivise employment of more women in the formal sector and enable higher take-home wages, he said.

The other pro-employment measures in the Budget include introduction of National Apprenticeship Scheme with stipend support and sharing the cost of basic training by the Centre to impart training to 50 lakh youth by 2020, introducing a system of fixed term employment for apparel and footwear sector and increasing paid maternity leave from 12 weeks to 26 weeks along with provision of crèches.

“These measures have started showing results. An independent study conducted recently has shown that 70 lakh formal jobs will be created this year,” the Minister said.

Also, the facility of fixed term employment will be extended to all sectors.

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Printable version | Jan 26, 2020 3:04:29 AM | https://www.thehindu.com/business/budget/govt-to-pay-new-recruits-pf/article22624308.ece

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