Winning Bizness Desk
Mumbai. While many companies are still reviewing the long-term benefits of this code, 64 per cent of companies believe that changes in the labor code could impact their balance sheets. Rest 34 per cent are yet to take any decision to change their compensation structure. 46 percent are working on a plan to continue the Provident Fund (PF) on the basis of basic salary.
74 companies included in this survey
The survey revealed that 53 per cent of institutions will review regulatory changes, labor reforms and rising costs of retirement benefits in the next two years. 74 companies were included in this survey. In this, 500 employees from manufacturing, information and technology, telecommunications, financial services, health and other sectors were talked to. This information has been given in a survey by the State of Retirement Benefits Study in India.
Rising concerns about PF
The study found that 71 per cent of companies have started assessing the changes due to the implementation of the new code. In the survey, 46 per cent companies said that they would continue to contribute 12 per cent of the basic salary to PF. 73 per cent of the country's employees believe that market volatility and current bond defaults or downgrades have raised their concerns about PF. 7 out of 10 people have PF under the regulatory purview. He says that the services of Employees' Provident Fund Organization (EPFO) have improved.
EPFO invests 15 pc in the stock market
Significantly, at present, the EPFO invests about 15 percent of the total amount in the stock market. The government wants to increase it to 25 percent. The meeting of the Central Board of EPFO Trust is to be held this month. In this this decision can be taken. The goal of the government is to earn more interest. In March, the interest rate on PF was reduced by 0.40 percent to 8.1 percent.
Labor Code be implemented from July 1
The Labor Code is to be implemented from July 1 and many states have made preparations for this. Under this, the working hours of the employees will increase every day. However, the weekly holiday can be of 3 days. Also, companies should have 50 percent or more of the basic salary of the total salary. Due to this, more money will be deducted from PF and gratuity but less money will come in hand. However, after retirement, the employees will get more amount.