The city unit of CPI (M) has alleged that the Vijayawada Municipal Corporation (VMC) has not been transferring the ESI and EPF contributions deducted from its workers' wages to the respective organisations.
Addressing a press conference here CPI(M) State committee member Ch. Babu Rao said that the Corporation had deducted Rs.4.26 crore from the wages of DWCUA and CMEY workers during last nine months. The amount, however, was not deposited in ESI and EPF accounts, he alleged. Neither the ESI, EPF benefits would be extended nor interest would be paid to them, he said.
As many as 3,250 DWCUA and CMEY workers were working in the VMC. They contribute between 1.75 per cent and 12 per cent towards ESI and EPF. The Corporation contributes between 4.75 per cent and 13.6 per cent towards ESI and EPF. Between Rs 10.69 lakh and Rs. 40.31 lakh had to be deposited with the ESI and EPF organisations respectively every month. The VMC was not even sending the mandatory declarations every six months, he said. The fate of regular employees was no better.
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The VMC had not paid salaries for the last two months to them, he said.