Around 80 per cent of Indian companies want the government to make retirement plans more tax friendly in order to increase employee participation.
Around 80 per cent of Indian companies want the government to make retirement plans more tax friendly in order to increase employee participation. While 70 per cent of companies feel that increased employee education is the need of the hour, 59 per cent suggest making access to plans simple and easy, according to the India Retirement Benefits Response Study by global advisory, broking and solutions company Willis Towers Watson.
Besides, around 59 per cent of respondents suggested widening the scope of the Employees’ Provident Fund (EPF) and 67 per cent want the National Pension System (NPS) to be made compulsory.
The study cautioned that while NPS and EPF are designed for fundamentally distinct purposes, 57 per cent of companies want the government to provide employees an option between the two whereas 54 per cent suggest merging them.
“Recent government initiatives around driving pension adequacy are a step in the right direction and what is now required is implementation guidance,” Willis Towers Watson Director Kulin Patel said, adding that employers are seeking greater clarity from the government around the role and inter-linkages between various schemes like EPF, NPS and superannuation.
As per the survey, one in three surveyed organisations currently offers NPS and as many as 70 per cent of those not offering so plan to implement it in the near future.
The survey was conducted across sectors during April to May 2016 and drew responses from 118 companies and senior leaders.