The Government may reduce PF Contribution to in-hand salary soon


It seems that the labour minister is inclined towards recommending a lesser contribution by the government for towards the Employees Provident fund. If we go by the reports, it has been said that the committee is having a discussion on the amount of contribution to be made towards the EPF by the government. It has also been speculated that the contribution towards the EPF will be reduced by 2 %, which means there will be an increase of in-hand salary.

At present, 24 % of every salary gets deducted in favour of your provident fund. The provident fund is taken care by the EPFO which stands for Employees’ Provident Fund Organization. Every month it gets deducted from your salary and goes as a contribution for the EPF. Now, 12 % is contributed by the employer and at the same time, the same 12% gets deducted from the salary of the employee against PF.

It seems that’s by the end of August, we all should be aware of the final recommendation made by the Government regarding the same. The proposition means to build the scope of standardized savings plan to 50 crores from the present scope of 10 crore individuals.

Once the board of trustees finishes its suggestions, the labour ministry will hold a meeting with different partners previously incorporating it into the government managed savings code.

For the most part, employer’s commitment is incorporated into the aggregate cost to the organization (CTC) of the representative. On the off chance that the PF commitment gets diminished then you will have an extra 4 % of pay credited in your record.

This will, in any case, diminish your reserve funds except if you put the additional cash in the different investment ventures.

The EPFO to a great extent puts your cash in settled wage securities. It has as of late begun putting resources into ETFs in view of Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 files. It doesn’t put resources into offers and values of individual organizations.

“The aggregate sum put by EPFO in ETFs as on June 2018 is Rs. 48,946 crores,” Labor Minister Santosh Gangwar prior said in a composed answer in the Rajya Sabha.


The EPFO’s zenith basic leadership body the Central Board of Trustees (CBT) at its 207th gathering hung on March 31, 2015, chose to put just in ETFs in the classification of value and related speculations.

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One Reply to “The Government may reduce PF Contribution to in-hand salary soon”

  1. Anjali Gupta

    its good information, good job

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