The government move to bear the whole 12% of the employers’ contribution in budget 2018 for the PF of new employees has invited mixed reactions across various sectors in the industry.
While several HR heads across industries are taking it as an opportunity to create more jobs in corporate firms, others are not sure about the move’s effectiveness in creating more jobs.
For women employees, there was one more positive step towards their empowerment. The in-hand salary of women employees will be more as their PF contribution will reduce to 8% from 12% for three subsequent years.
While the interpretation of this step was still ambiguous, most of the organisations acknowledged this as a positive move. Women employees will certainly benefit from this as their contribution towards PF has reduced.
“Our organisation will benefit from this and will help create jobs and also improve our diversity ratio”, said Suresh Bose, Head, Human Resources, Vedanta. He further added that more clarity from the Ministry of Labour and Employment is required on this, expecting that the policies would become clearer by March 2018.
“The government’s move will incentivise employers such as us to go and hire more people,” said Yugesh Goutam, global HR president, Lupin. Adarsh Mishra, chief human resources officer at Panasonic India, too, agreed. As per the current law, all organisations with more than 20 employees have to get themselves registered with the EPFO.