The Central Board of Trustees (CBT) of retirement fund body EPFO today turned down the proposal to reduce the mandatory contributions from workers and employers to 10 per cent.
Presently, employees and employers contribute 12 per cent of basic wages each towards Employees Provident Fund Scheme (EPF), Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance Scheme (EDLI).
The proposal to reduce the contributions by employers and employees to 10 per cent of basic wages, including basic pay and dearness allowance, was listed on the agenda for meeting of the Employees' Provident Fund Organisation (EPFO), which was held here today.
"The employer, employees and the government representatives expressed their reservations about it and they feel that it should be continued at 12 per cent. It is their view and it has been recorded... now we will see... government will take a view on it," Labour Secretary M Sathiyavathy said.
Union Labour Minister Bandaru Dattatreya attended the meeting.
In the meeting, CBT approved hike in investment limit in exchange traded funds (ETFs) from the present 10 per cent to 15 per cent, Dattatreya told reporters.
CBT has decided to continue with SBI Mutual Fund and UTI Mutual Fund as ETF managers.