Date December 12, 2016
Union Cabinet approves reforms to boost employment generation and exports in India

Union Cabinet approves reforms to boost employment generation and exports in India

The Union Cabinet on 7 December 2016 approved a set of reforms, including simplification of labour laws, and providing production incentives through technology upgradation for the ‘Made-ups’ manufacturing sector. The key reforms are:

  • Contribution to the Employees’ Provident Fund (EPF) has been made optional for employees earning less than INR 15,000 (Rupees fifteen thousand) per month.
  • Permissible overtime in the ‘Made-ups’ manufacturing sector has been increased to 100 hours per quarter.
  • The Government of India would, in addition to the present 8.33%, bear a further 3.67% of the employer’s contribution, for the first 3 (three) years of employment in the ‘Made-ups’ manufacturing sector, for all new employees registering themselves with the EPF Organization.
  • Additional subsidy of 10% through the enhanced Technology Upgradation Fund Scheme (TUFS) would be provided for the ‘Made-ups’ manufacturing sector.

The press releases in this regard can be accessed at:

  1. http://pib.nic.in/newsite/PrintRelease.aspx?relid=155054
  2. http://pib.nic.in/newsite/erelease.aspx?relid=146422