EPF scheme may be extended to all firms

The government is considering a proposal to extend Employees Provident Fund Scheme to all companies with over 10 employees, the Parliament was informed.

"The proposal is under examination and consideration of the government," Labour and Employment Minister Mallikarjun Kharge said in a written reply.

At present the EPF Act has provisions that any factories or establishments having 20 or more employees have to contribute to the EPF.

To a different question about existing pension scheme and whether it has become non-sustainable,

the minister said they are considering a report of an expert committee constituted by the Ministry to review the scheme.

The last 9th and 10th valuation conducted for 2005 and 2006 has revealed an "actuarial deficit of Rs 22,659 crore (Rs 226.59 billion)" relating to the scheme, he said.

Kharge, however, said among the corrective steps taken were increasing reduction factor for early pension and introduction of a withdrawing option for commutation and return of capital.