The Union cabinet has rejected a proposal to bring all companies with 10 or more workers within the ambit of the Employees’ Provident Fund Organisation (EPFO) in an apparent bid to protect the interests of small and medium factories that are thought to be key to the success of the Make in India mission.
The rejection came after the government realized that although the move would have brought around five million more workers under social security benefits, it would have affected the micro, small and medium enterprises (MSME) sector financially, two government officials said requesting anonymity.
