EPFO or Employees Provident Fund Organisation may soon allow Employees Provident Fund or EPF account holders to decrease their Provident Fund or PF contribution below 12 per cent. The interesting angle in this Modi Government proposal is to continue getting 12 per cent contribution from their employers, even when their PF contribution is less than 12 per cent. If an employee does that, he or she would get a higher salary per month and at the same time, they will enjoy 12 per cent PF contribution from their employer. The Modi cabinet has cleared the proposal and it may be tabled in Parliament in this Winter Session under the Social Security Code 2019.
This change in EPFO rule may get tabled in Parliament in the coming week and the changed EPFO rule may get to be a part of Social Security Code 2019. In this code, PF account holders will have the luxury to choose their PF contribution, but the employers will be bound to contribute making 12 per cent payment of the basic salary of the PF or EPF subscriber.
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The Modi Cabinet has already approved this EPF proposal and once it gets cleared by Parliament, EPFO will notify the changed norms in regard to the Provident Fund contribution.
Source: Zee Business
