Most gem, textile workers sans provident fund cover

  • | Saturday | 14th January, 2017

The employer are liable to pay only employer share of PF along with the simple interest at the rate of 12%. The average wages paid in these sectors would be in the rage of Rs 15,000, which is enough to enroll the employees under PF. "We have lined up seminars and meetings with the industries, units, associations and the giant industries in the Hazira belt. If the employers are opting for the declaration scheme then they can actually save almost 70 per cent from their actual liability. After March 31, 2017 we will start the assessment process across the city" said Verma.

SURAT: Surat might be known as the economic powerhouse of Gujarat with the presence of the world's largest diamond cutting and polishing centre and India's largest man-made fabric (MMF) industry, together employing over 15 lakh workers, but the workforce is not getting their dues when it comes to the compliance with the employee enrolment under the Provident Fund (PF).As per the Employees' Provident Fund Organisation (EPFO) record, the diamond industry has less than 40,000 workers against the total workforce of 5 lakh and the textile industry has less than 60,000 workers against the total workforce of 10 lakh covered under PF.Looking at this scenario, the regional office of the EPFO has decided to act tough against such companies, units and firms, violating the PF Act.A massive campaign has been started for the employee's enrolment, which will run from January 1 to March 31, under the EPF Act and scheme in the diamond city.Under the scheme, any employer can make a declaration regarding enrolment of its employees from April 1, 2009 to December 31, 2016. The employer are liable to pay only employer share of PF along with the simple interest at the rate of 12%. For such employees who PF was not deducted by the employers, they are not required to pay employees share.Also, the penalty for late payment which usually ranges between 5% and 100% is reduced to a nominal Rs 1 per annum in respect of such employees and the administrative charges been abolished."It's like the Income Declaration Scheme (IDS). The employers have been given a fair chance to come into the system till March 31, otherwise be prepared to face music after the date is over" informed regional PF commissioner, PB Verma.The EPF & MP Act, 1952, applies to any notified establishment employing 20 or more employees and that the basic salary and dearness allowance is less than Rs 15,000 per month.According to Verma, there is a huge scope of PF enrolment from the diamond and textile sectors. The average wages paid in these sectors would be in the rage of Rs 15,000, which is enough to enroll the employees under PF."We have lined up seminars and meetings with the industries, units, associations and the giant industries in the Hazira belt. If the employers are opting for the declaration scheme then they can actually save almost 70 per cent from their actual liability. After March 31, 2017 we will start the assessment process across the city" said Verma.

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