- The Indian government is planning to relax the employee contribution to Employees Provident Fund which will increase
take home salaries . - As of now, both the employers and the employees each contribute 12% of the salary to the Employee Provident Fund Organisation
- The government aims to lower the mandatory 12% by employees towards
EPF .
As per a proposal, the government will decrease the rate of contribution for a specific class of workers$4However, the law does not suggest any change in the contribution of the employer's.
Currently, all the employees who are earning upto ₹15,000 a month have to pay 24% of their salary. As of now, both the employers and the employees contribute 12% of the salary to the Employee Provident Fund Organisation.
The government aims to relax the mandatory 12% contribution by the employee.
Along with this, the government also wants to give employees an option to choose between all the schemes provided by the Employees Provident Fund Organisation (
A first draft of the EPF & MP (Amendment) Bill, 2019, has sought comments from stakeholders till September 22.