Monday, 9 December 2019

EPFO monthly contribution to be reduced to increase take home salary


EPF withdrawal

EPFO monthly involvement to be cut to division take-home income

The employee share of EPFO involvement may fluctuate between 9-12% dependent on areas. The elasticity will help employees to take home a better income said an official
The side effect of this change will lower the superannuation saving the number of employees in the long run.

NEW DELHI: The take-home income of employees in the organized the area may go up a little as the union government looks to permit select areas to cut monthly legal judgments on account of the employee's provident fund (EPF).

But, the side effect of this change will lower the superannuation saving amount of employees in the long run.

The variation of rules, which will be made part of the Social Security Code bill 2019, to be listed in Parliament this week, may permit employees to pay less than the present 12% legal involvement. In contrast, the employer involvement will go on at 12%.

Presently, both employees and employers of a recognized area establishment contributes 12% each of the basic income each month. The rules may not be general for all areas and government may permit this in a sure area like MSME, textile, and start-up firms, as per two government officials familiar with the improvement who spoke on the condition of privacy.

"The employee share of EPFO contribution may be different between 9% and 12%, depending on areas. The elasticity will help employees to take home a better income," the first official said.

0 comments:

Post a Comment

EPFO monthly contribution to be reduced to increase take home salary

EPFO monthly involvement to be cut to division take-home income The employee share of EPFO involvement may fluctuate between 9...