EPFO account, ESI contribution: Preparations for Union Budget 2021-22 (April-March) are in full swing and there are expectations from the government from various quarters and that includes the common man. Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has prepared a list of demands for the budget. It has suggested that the government should announce certain measures related to the Employees’ Provident Fund (EPF) account and the ESI contribution. If the government accepts the demands, the employees will end up having more cash in their hands.
The suggestions with regards to EPFO account and ESI contribution have already been submitted to the government.
Know what it is recommending on EPF account and ESI contribution:
- FICCI has urged the government to consider making employees’ contribution to EPF voluntary without making any change in the employers’ contribution.
- It has also urged the government to consider giving a three-year holiday for ESI contribution to both employers and employees. These will enhance the take home salary for individuals and will be particularly helpful in reducing the gap between gross and net salary for employees at the bottom of the pyramid.
- FICCI has also requested the government to consider MGNREGA for Urban Poor. This could include sanitation work, plantation of trees, maintenance of public places.
Among other things, it has requested the government to announce interest subventionof 3-4 per cent on Housing Loans for a period of 3 to 4 years. It said this will not only help real estate sector but also help other industries.
“The government has been taking a series of bold initiatives to boost the economy that’s already reviving strongly. The next budget is an opportunity to provide catalysts to this process,” FICCI President Uday Shankar, President said.
FICCI is the largest and oldest apex business organisation in India. A non-government, not-for-profit organisation, FICCI is the voice of India’s business and industry.
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It represents around 250,000 companies from the Indian private and public corporate sectors and multinational companies.