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StaffCorner

26 May, 2017 11:28 PM

Labour ministry proposes to reduce the PF contribution to 10% from 12%

Labour ministry proposes to reduce the PF contribution to 10% from 12% The labour ministry has proposed to reduce the contribution to the Employee Provident Fund (EPF) from 12% to 10%. Currently, the employers contribute 12% of the basic salary towards the employee's Provident Fund savings with an equal contribution by the employee.

The proposal, which will be opposed by trade unions, will come up for approval in the meeting of the Central Board of Trustees (CBT) on Saturday. The trade unions oppose the move terming ti as an attack on social security.

The move, according to the labour ministry, will increase the take-home salary of employees. The EPFO said that employees who intend to make higher savings can still do so by availing the option of voluntary provident fund contribution allowed under the present law.

The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, empowers the Central government to lower the contribution rate and the government intends to issue a notification to effect the change.





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