On January 1st, 2025, the Labour Department of the Government of Madhya Pradesh issued a draft amendment to the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982, which will bring significant changes to the contribution rates under the scheme. This amendment is aimed at improving the welfare of employees and ensuring that the fund is adequately supported.
The proposed amendment affects Section 9(2) of the Act, which governs the contribution structure for both employees and employers in registered establishments. The key changes include:
1. Increase in Employee’s Contribution
- Under the current provision, employees are required to contribute ₹30 every six months (on 30th June and 31st December). The new amendment proposes to raise this amount to ₹50 every six months.
2. Increase in Employer’s Minimum Contribution
- Currently, employers are required to contribute ₹30 every six months for each employee. The new amendment will increase this to ₹50 as well. Additionally, there is a stipulation that the employer’s contribution should not be less than ₹1,500 every six months. The proposed amendment increases this minimum contribution to ₹2,500 every six months.
What Does This Mean for Employees and Employers?
The amendment seeks to adjust the contribution rates to better reflect the current economic scenario. For employees, the change will result in a modest increase in the amount they need to pay towards the fund every six months. Similarly, employers will face an increase in their contribution, with the minimum threshold being raised significantly from ₹1,500 to ₹2,500 every six months.
The increase in contributions is expected to enhance the Shram Kalyan Nidhi Fund, ultimately benefiting employees in the long run with improved welfare programs and financial security.
Public Consultation :
The draft amendment is currently open for public review. According to the notification issued by the government, 30 days from the date of publication (i.e., until January 31st, 2025) will be given for stakeholders to submit their objections or suggestions.
The state government has invited all affected parties to share their views, and these will be considered before the final decision is made.
Once the 30-day period expires, the government will review any feedback received and proceed with the necessary steps to implement the changes.
