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: