Labour Ministry is of the opinion that the retirement fund body EPFO should increase investments in the stock markets through ETFs, as the exercise has started giving returns
The Labour Ministry has amended the Employees' Pension Scheme 1995 to provide the entitlement of minimum monthly pension of Rs 1,000 in perpetuity to its over 50 lakh pensioners
Speaking at the Plenary session of International Labour Conference (ILC) in Geneva, Aggarwal said this is being achieved by bringing in the necessary-ease in compliance-of provisions related to labour, the Labour Ministry said in a statement.
Noting that EPFO's investments in Exchange Traded Funds (ETFs) have given good returns during March and April this year, Union Labour Minister Bandaru Dattatreya today said these investments would be increased and the quantum for coming year would be decided soon.
While ratifying interest rate of 8.8 percent on Employees Provident Fund (EPF) for 2015-16, sources said it advised the Labour Ministry to create a reserve fund for future to protect workers from interest rate shocks in a regime of falling interest rates.
Beleaguered businessman Vijay Mallya, who is facing legal proceedings for allegedly defaulting on loans of over Rs 9,000 crore from various banks, is currently under scanner by multiple agencies, including CBI.
These awardees made outstanding contribution to productivity and exhibited exceptional courage and presence of mind on duty, a Labour Ministry release said.
Uber's chief advisor, David Plouffe says the memorandum of understanding (MoU) signed with the Indian government will result in organised employment in the country.
The Labour Ministry held tripartite consultations to discuss the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2015, which was opposed by the unions, including BJP-backed Bhartiya Mazdoor Sangh (BMS).
"Labour Ministry has called a tripartite meeting which is scheduled on January 5, to discuss the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2015," a ministry official said.
The Labour Ministry is in the final stages of preparing a draft amendment bill to extend the period of maternity leave of working women from 12 weeks to 26 weeks and will soon send it for inter-ministerial consultations.
Winding up a debate on the Payment of Bonus (Amendment) Bill, 2015 in the Lok Sabha, Labour Minister Bandaru Dattatreya also said that following the recommendations of the second national labour commission, 44 central labour laws would be converged into four codes.
The ministry is ready with four bills -- the Child Labour (Prohibition & Regulation) Amendment Bill, the Payment of Bonus (Amendment) Bill, the Small Factories (Regulation of Employment and Conditions of Services) Bill and the Employees' Provident Fund & Miscellaneous Provisions Bill.
"The government wants to rationalise labour laws and these laws are in the interest of workers and will protect their rights. The purpose of this is employment generation and ease of doing business," Labour Minister Bandaru Dattatreya told reporters.
Earlier in August, the Labour Ministry had proposed to make fundamental changes on payment of minimum wages across the country and had said that it will be made mandatory.
According to sources, the Central Executive Committee (CEC) of Indian Commercial Pilots Association (ICPA) is likely to serve a strike notice to the Air India management in the next two days.
Last month, the aluminium manufacturer had announced its decision to shut down the rolling mill in Korba (Chhattisgarh) on account of "steep fall" in the prices of the metal besides dumping from China and falling margins.
This is being seen as a sign of protest against a recent labour ministry directive which has barred senior pilots of the national carrier from being a part of the employees union.
Welcoming the EPFO decision to invest five percent of its incremental deposits into capital markets through Exchange Traded Funds (ETFs), Sebi chairman UK Sinha said other pension funds should also look at investing in markets.
Retirement fund body EPFO plans to give an option to its subscribers to choose from various investment products where they want their money to be invested and a larger focus might be eventually on the equity market.
At present, as per Employees' State Insurance Act, 1948, it is mandatory for formal sector workers getting gross pay of up Rs 15,000 per month to subscribe to health insurance scheme run by the ESIC.
According to the new definition of the wages, as proposed in a draft bill, for the purpose of computing provident fund contributions by employers as well as employees, the wages would include basic pay and allowances.
The ministry intends to collaborate with PSU banks, housing finance companies, state-owned construction firms like NBCC and authorities like DDA, PUDA, HUDA to build houses at a price to be fixed by the government. Over 70 percent EPFO subscribers' basic wages are less than Rs 15,000 per month.
The Labour Ministry is preparing a mega housing scheme to offer affordable houses to over 5 crore subscribers of retirement fund body EPFO in the backdrop of the government's mission 'Housing for all by 2022'.
EPFO estimated an income of Rs 25,048.55 crore for 2013-14. As per its estimates, the payment of interest rate at 8.75 percent would require Rs 25,005.41 crore and there would be a surplus of Rs 43.14 crore.