EPFO account Update: By the way, everyone is mostly aware about the Provident Fund Account (EPFO account). But recently, the discussions about the new wage code are intensifying.
EPFO account Update: By the way, everyone is mostly aware about the Provident Fund Account (EPFO account). But recently, the discussions about the new wage code are intensifying. It is being told that the government is going to implement the New Wage Code very soon. If this happens then the people working in the private sector will get silver.
Because they will also be able to withdraw crores of rupees from the PF account during retirement like a government employee. Because after the implementation of this law, the employees are going to get a big relief. Although no announcement has been made by the Central Government in this regard so far, but the government has given its indications. Due to which crores of employees of the country are going to get direct benefits.
How to get relief?
In the new wage code, it has been said that the basic salary of the employee will not be less than 50 percent of his CTC. This will also affect the amount of EPF (Employees Provident Fund) of the employee. The employee and the company will contribute 12-12 percent of the basic salary every month to the PF. That is, under the new rules, more money will be deposited in the employee’s account. Which will reach into crores till retirement. Therefore, employees working in the private sector during retirement will also be able to withdraw a lot of money from the PF account.
What does EPFO rule say?
According to EPFO rules, if you withdraw the entire amount of PF, then it is not taxed. Therefore, after the implementation of the new wage code, when the basic salary is above 50% and the PF contribution is deducted on it, then the PF fund will also be more. That is, when the employee retires, he will have more PF balance than before. Let us tell you that after the implementation of the New Wage Code, about 66 percent more will be deposited in the PF account of the employee. Whose interest will also get more.
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