Rules related to PF contribution will change from August, your hand salary will be reduced

In May, the Indian government decided to reduce provident fund (PF) contribution from 12% to 10% for 3 months. This step was taken so that the employer in the COVID-19 period and the employer who gave them a salary, had some more money in their hands. These 3 months are now complete, so now from August, your employer will return to the old deduction rates. That is, from August, the EPF will be cut by 12 per cent as before. In May, Finance Minister Nirmala Sitharaman slashed the EPF contribution by 4 per cent for 3 months. As a result, employees of about 6.5 lakh companies benefited about Rs 2,250 crore every month.

 

As per the rule, the amount of money the employee deducts for the PF fund, the same amount of money the employer has to pay for this fund. In such a case, if your basic salary is 25 thousand rupees, then instead of 3000 rupees in PF, now the contribution of 2,500 will go and the same will be added to your company. That is, every month your PF fund will reach 1000 rupees less. This rule is for 3 months, ie, a total of Rs 3000 less will reach your PF account.

 

Employees and employers collect 24% according to the EPFO rule. It consists of 12% Basic Salary and Dearness Allowance (DA) - as EPF deduction every month for the retirement fund created by the Employees Provident Fund Organization. The company deposits this much money in EPFO.