Now, get paid less and more savings in provident fund

Last Updated: Tuesday, December 11, 2012, 09:33

Tags: Employees' Provident Fund Organisation,EPFO,Provident Fund

Zeebiz Bureau

Mumbai/New Delhi: Now get ready to feel the pinch in your pocket when you take home a reduced salary. A new circular issued by the Employees Provident Fund Organisation (EPFO) will reduce the take home pay of salaried employees.

According to a report published in The Times of India, the new circular will mean a lower pay because allowances paid to employees will have to be added back to the basic salary and provident fund (PF) contributions computed against this higher value.

The circular dated November 30 states that basic wages will include all allowances which are paid to the employees. Thus, various allowances such as conveyance, educational allowance, medical allowance, etc., will have to be taken into consideration while computing the PF contribution.

First Published: Tuesday, December 11, 2012, 09:11

Comments

PF Act does not make it compulsory for deduction of PF if the salary of the employee is Rs 6000/- or more Its optional for the employee to get PF deducted from his salary but the employer never gives this option and the employee has to wily nily get the amount deducted I think government should leave saving options to the discretion of the educated employees and not decide on their part Its less of a welfare measure and more draconian in nature aimed at extracting money to finance the paraphernalia of Government-Ajit -Noida

this is best circular for employees and saving of salary but now some employers others allowance will be pay in extra slip-DAMODAR PRASAD NAMA -JAIPUR

If we want to save we will anyway do that! Govt doesnt need to worry abt it They should not further cut down disposable income Salaried class are already stretched to limit due to inflation What govt wants is source our income for their senseless expenditures Isn`t money from divesting govt owned enterprises able to satiate their greed?-Akshay -Delhi

This is effective from which date ?-C V Srinivasan -Mysore

Generaly Employee Does not give from Their Side All PF Contribution from Employer Side is Deducted from Employee Salary ie Cost To Company Employee will get Less cash in hand which will lead hardship in day to day life-Narendra Singh -Bahadurgarh

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