Dear Reader,
Seeking your support for an 'Employee Salary Choice request' which will be submitted to the Central Ministry of Labour.
India’s labour laws mandate the highest salary deductions among various countries in the world; in a cost-to-company world this can mean an almost 49.8% salary deduction for low wage employees (table pasted below). Most low wage employees do not have such high savings rates and this leads to high attrition and high informal employment because they cannot live on half their salary. Yet instead of creating competition and choice recent moves have rewarded the benefit monopolies like EPFO and ESI with bigger kingdoms.
As the Ministry of Labour considers various changes to labour laws, we propose to submit a petition signed by employers making the case for a radical change in India’s benefits regime by which employees get three choices in how they are paid their salary:-
• whether to make the 12% employee contribution to Provident Fund or opt out of it
• whether to pay their 12% employer contribution to the Employee Pension Scheme (EPS) or the National Pension Scheme (NPS)
• whether to pay their ESI contribution to the ESI corporation or purchase insurance from any IRDA regulated insurance company.
We already have more than 500 companies who have signed the petition and would really appreciate if you could sign on behalf of your company as well. To ensure integrity, all companies will be contacted for a confirmation of their participation, the contact information is only for validation purposes and will not be submitted as part of the petition.
The exact format of the letter that will finally be submitted has been attached.
Click here to give petition http://teamlease.com <link updated to site home>
Seeking your support for an 'Employee Salary Choice request' which will be submitted to the Central Ministry of Labour.
India’s labour laws mandate the highest salary deductions among various countries in the world; in a cost-to-company world this can mean an almost 49.8% salary deduction for low wage employees (table pasted below). Most low wage employees do not have such high savings rates and this leads to high attrition and high informal employment because they cannot live on half their salary. Yet instead of creating competition and choice recent moves have rewarded the benefit monopolies like EPFO and ESI with bigger kingdoms.
As the Ministry of Labour considers various changes to labour laws, we propose to submit a petition signed by employers making the case for a radical change in India’s benefits regime by which employees get three choices in how they are paid their salary:-
• whether to make the 12% employee contribution to Provident Fund or opt out of it
• whether to pay their 12% employer contribution to the Employee Pension Scheme (EPS) or the National Pension Scheme (NPS)
• whether to pay their ESI contribution to the ESI corporation or purchase insurance from any IRDA regulated insurance company.
We already have more than 500 companies who have signed the petition and would really appreciate if you could sign on behalf of your company as well. To ensure integrity, all companies will be contacted for a confirmation of their participation, the contact information is only for validation purposes and will not be submitted as part of the petition.
The exact format of the letter that will finally be submitted has been attached.
Click here to give petition http://teamlease.com <link updated to site home>