In view of the Corona crisis, the government has reduced the contribution made by both the company and the employee to the Employees Provident Fund (EPF) account from 12 per cent to 10 per cent for the next three months (June, July and August). This step has been said that this will increase the take home salary (more money in hand) of the employees. The effect of this decision has been told through question and answer. EPF shared it on Twitter. If you too are in doubt, the answer to all the questions is here.
Will it also apply to new companies starting in May-July?
Yes, this law will also apply to all companies which will start from May to July 2020.
Can employers or employees pay at a higher rate?
The EPF has set a minimum rate of 10 per cent PF contribution by the employee and the employer. Employees and employers are free to contribute more to the PF fund.
Can employers or employees pay at a higher rate?
The EPF has set a minimum rate of 10 per cent PF contribution by the employee and the employer. Employees and employers are free to contribute more to the PF fund.
Will those working under the CTC model benefit from it?
Yes, if the employer deposits PF at Rs 10,000, then after deducting the PF contribution, he will now get Rs 200 more.
How will this deduction benefit the employee and the employer?
If someone’s basic salary is Rs 10,000, then Rs 1000 will be deducted for PF. Earlier, 1200 rupees were deducted. At the same time, the employer has to pay only Rs 1000 instead of Rs 1200 contribution.
How will this deduction benefit the employee and the employer?
If someone’s basic salary is Rs 10,000, then Rs 1000 will be deducted for PF. Earlier, 1200 rupees were deducted. At the same time, the employer has to pay only Rs 1000 instead of Rs 1200 contribution.
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