Scrap the 2% EPF rule for foreign workers before it hurts employers

The MCA economic and SME affairs committee calls on the government to immediately cancel the proposed policy requiring both employers and foreign workers to contribute 2% each to the Employees Provident Fund (EPF), set to take effect this October.

This policy is ill-conceived and poorly timed. At a moment when the economy is underperforming, demand is sluggish, and operational costs are escalating, imposing new financial obligations on businesses is not just unrealistic but damaging as well. Employers are already struggling to stay afloat. Adding another layer of cost may push some over the edge and prompt others to cut back, freeze hiring, or shift costs onto consumers.