1. EPFO may reduce PF contributions to 10% for better take home salary

EPFO may reduce PF contributions to 10% for better take home salary

Trustees of retirement fund body EPFO may approve a proposal tomorrow to reduce the mandatory contributions toward social security schemes run by it to 10 per cent for workers as well as employers.

By: | New Delhi | Published: May 26, 2017 3:33 PM
epfo, epfo pf contribution, epfo may reduce pf contribution, epfo pf contribution, epf, eps, edli An EPFO trustee and Bharatiya Mazdoor Sangh leader P J Banasure said, “We will oppose this proposal. (Reuters)

Trustees of retirement fund body EPFO may approve a proposal tomorrow to reduce the mandatory contributions toward social security schemes run by it to 10 per cent for workers as well as employers. Presently, employees and employers contribute 12 per cent of basic wages each towards Employees Provident Fund Scheme (EPF), Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance Scheme (EDLI).

The proposal to reduce the contributions by employers and employees to 10 per cent of basic wages, including basic pay and dearness allowance, is listed on the agenda for meeting of the Employees’ Provident Fund Organisation (EPFO) scheduled on May 27, 2017 in Pune, a source said.

The source said the labour ministry received several representations stating that the move will leave more money with workers for expenditure and reduce employers liability, which will eventually perk up economy.

However, trade unions have decided to oppose the proposal saying this will dilute these social security schemes. An EPFO trustee and Bharatiya Mazdoor Sangh leader P J Banasure said, “We will oppose this proposal. This is not in workers interest.”

Another trustee and All India Trade Union Congress Secretary D L Sachdev said, “The reduction of contributions will reduce the benefits for workers by four percentage point. At present employer and employee contribute 24 per of basic wages. This will be reduced to 20 per cent.”

At present the employees’ entire 12 per cent contribution is deposited into his EPF account.

Besides, 3.67 per cent is also contributed to the EPF account by the employer who also contributes 8.33 per cent of basic wages to the EPS account. That apart, the employer also contributes 0.5 per cent of basic wages towards the EDLI for insurance benefit. Thus the employer eventually contributed 12.5 per of basic wages.

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    Kabilesh
    Jun 4, 2017 at 4:35 pm
    Instead of keeping hands on employee or public's money. Why can't the government cut the benefits that ministers get like electricity, phone and other allowances stead of giving more things free,they can really raise ry and reduce all the benefits that they get.They can spend there own money. This could be succeeded only by the good government....
    Reply
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      Kabilesh
      Jun 4, 2017 at 4:36 pm
      Instead
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    2. S
      Srinivas
      May 27, 2017 at 5:39 pm
      Remove it totally and tax 33 at source, 28 on expenditure via GST - then the govt can party with the money.
      Reply
      1. M
        mohan v
        May 27, 2017 at 1:22 pm
        Govt. targets helpless ried cl by deducting 12 of basic ry, in name of PF, retirement. Govt Contribution is 0 but it behaves as if it is doing a favor to ried employees. When u claim it, there highly skilled govt employees reject claims saying "rejected! Reason for rejection not available in database" Now one more improvement. Now You can't even check yr balance with latest software update.
        Reply
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          Srinivasarao G
          May 27, 2017 at 11:14 am
          It is not good decision it will decrease to employee savings by 4 and employer will get more profit by 2 of basic ries of employees.
          Reply
          1. பி.ரமேஷ்
            May 27, 2017 at 9:11 am
            தொழிலாருக்கு எதிரான செயல் மேலும் சேமிப்பும் குறையும். எனவே இதனை வன்மையாக எதிர்க்கிறேன்
            Reply
            1. S
              Sushil
              May 26, 2017 at 10:25 pm
              This means i have to pay additional tax on this reduced 2.5 of my basic. Win win decision for Government.
              Reply
              1. S
                Surendra
                May 26, 2017 at 9:32 pm
                MODI JI WORKERS KA KHUN MAT CHUSO WORKERS AGAINST DECISION MAT LIGIYE WORKERS MAR JAYEGA
                Reply
                1. P
                  Pk
                  May 26, 2017 at 8:26 pm
                  This Modi's 3rd year gift to corporate... this 2 of ry will eventually go to income tax .. both central govt and corporate will be bene ed.. a pure anti worker step and scam too...
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                    Dr Ajay Lodha
                    May 26, 2017 at 7:58 pm
                    This is antiworker proposal of government.
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                      Kamal
                      May 26, 2017 at 7:55 pm
                      It should be open to employ.... Govt don't give any social security to tax payer.. And only want to save govt employees and self income... From my opinion it is a wrong step. Why govt want that every one work till death...
                      Reply
                      1. R
                        Rameswar Pattanayak
                        May 26, 2017 at 6:25 pm
                        EPFO is no more a retirement fund as the present scenario doesn't allow a financially comfortable life to its members. Hence it is pul hands in. It is a failed fund. Talk to a GM or ED of any industry retired 20 years back, you are certain to find him in penury, not able to make both ends meet. His contemporary Govt servant is drawing pension of 70-80000 and that continues to increase.
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                          Dr Ajay Lodha
                          May 26, 2017 at 8:00 pm
                          You are absolutely right. I'm also with you
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                          Kuldip Verma
                          May 26, 2017 at 5:01 pm
                          This is the only way to save your money if you reduce the amount to 10 then employees savings will be less I think it's better to have the same continue. Money earned is money saved. I don't know whose idea is this EPFO should not implement this idea for this workers Stupid idea this is.
                          Reply
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