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PF deductions to continue at 12% instead of the proposed 10%
Posted on: 29/May/2017 10:01:24 AM
It is learnt that the Employee Provident Fund (EPF), which is deducted at 12% from the monthly salaries of employees in various organisations, will continue at the same rate (12%).
For the purposes of Provident Fund (Future facility of resource for the employee and the family after retirement), is deducted at 12% from the monthly salary of the employee and at 8,33% from the organisation contribution.
A recommendation that this amount must be increased to Rs. 25000 per year for the employees who earn Rs.15000 per month as salary.
EPF maintained and administered by the EPFO (Employees Provident Fund Organisation), has 4.2 Crores PF subscriber.
8 Lakh employer organisations have registered in EPFO. EPFO manages Rs. 11.50 Lakh Crores.
A recent demand was made to reduce the monthly PF deduction rate from the prevailing 12% to 10%. A meeting regarding this suggestion was conducted by EPFO at Pune.
A decision was taken to continue the monthly PF deduction at 12%.
It is remarkable to note that both the employee union representatives and the employers were against the above proposal to reduce PF monthly salary deduction from 12% to 10%.
