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Budget 2016 and EPFO: FM Arun Jaitley said that to create new jobs, the government has decided to pay 8.33 per cent of wages earned to EPS on behalf of employers for workers during first three years of employment, and has given Rs 1,000 crore for the same. The decision will be a big relief for employers as they are required to make mandatory contribution of 8.33 per cent of employees' basic wage towards EPS. (PTI)
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3. EPF tax rollback: "When this 60 per cent of the remaining corpus is invested in annuity, no tax is chargeable. This means that the entire corpus will be tax free if invested in annuity. Only the periodic return on annuity will be taxable," Jaitley said. (PTI)
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Budget 2016 and EPFO: This will incentivise employers to recruit unemployed persons and also bring into books the informal employees, he said. "In order to channelise this intervention towards target groups of semi-skilled and unskilled workers, the scheme will be applicable to those with the salary of up to Rs 15,000 per month. I made a provision of Rs 1,000 crore for this scheme," the minister said. (Reuters)
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EPF tax rollback row: According to the impositions, only 70 lakh out of 3.70 crore active EPF subscribers will be impacted by the proposed tax change, a rethink has been prompted because of protests from the vocal middle class. The EPF tax plan is the only major proposal in Budget 2016 to have attracted significant criticism.
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Budget 2016 and EPFO: "Thus deduction of 30 per cent on the emoluments paid to such employees can be claimed for three years. This minimum number of days for which they should be employed during the years is proposed to be reduced from 300 to 240 days," he added. However, no deduction will be allowed in respect of employees whose emoluments exceed Rs 25,000 per month and also for whom the government is paying the entire EPS contribution, the minister clarified. The minister also proposed 100 model career centres by the end of 2016-17 and interlinking of state employment exchanges with National Career Service portal. (Reuters)
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The labour bureau data also revealed that the October-December period of 2015 was the worst fourth quarter in the last seven years in terms of employment generation. (PTI)
Indian woman leaves US after layoff during F-1 OPT, calls goodbye ‘hardest step’
