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PF Contribution from persons earning Rs. 15000/- per month to be cancelled
Posted on: 14/Feb/2016 12:58:43 PM
12 percent of the monthly salary is deducted as Provident Fund from the employees working in various organisations.
Amount equivalent to this 12 percent of the employee`s monthly salary is contributed from the company to the provident fund of the employee.
However, for those who earn a monthly salary of Rs. 55000/-, only 8 percent is deducted as Provident Fund contribution.
An action committee formed by the Prime Minister Narendra Modi has recommended some changes in the existing system of Employee Provident Fund deduction from monthly salary.
If the PF deduction of 12 percent from the persons who earn Rs. 15000/- per month is cancelled, they will be able to get an additional Rs. 1800/- from their salary.
Most of the employees working in unorganized industry sector prefer to earn their monthly salary on a contract basis without any deductions like PF, ESI, etc.
This facilitate higher amount of money on their hands with their full salary available.
It is also learnt that if this 12 percent as the monthly PF deduction is cancelled, more job opportunities will be created in the unorganized industry sector.
Since the action committee has made this recommendation, the central government will review the same and take a decision.
