Finance Minister Nirmala Sitharaman on Wednesday introduced measures associated to provident fund (PF), which can end in a hike in take residence salaries of workers throughout the board. The announcement got here as a part of the primary tranche of measures detailed upon, as part of the Rs 20 lakh crore financial bundle that Prime Minister Narendra Modi introduced on Tuesday. Ms Sitharaman on Wednesday stated that the statutory deduction of 12 per cent from salaries in the direction of PF by each the employer and worker, will now be diminished to 10 per cent every. This measure will probably be relevant for the subsequent three months, Ms Sitharaman added.
All institutions beneath the Workers’ Provident Fund Organisation (EPFO) will take pleasure in the advantages of this scheme, Ms Sitharaman stated.
Nevertheless, state and central governments will proceed to pay 12 per cent in the direction of PF contribution, whilst these employed by them will take pleasure in the advantage of paying 10 per cent solely.
Moreover, the federal government additionally prolonged, for additional three months, the PF-related profit for smaller corporations, which had been introduced beneath the Pradhan Mantri Garib Kalyan Yojana in March. Beneath that scheme, it was introduced that institutions with as much as 100 workers, 90 per cent of whom, earn lower than Rs 15,000 a month, won’t should pay the PF contribution, as it is going to be coated by the