News: Provident Fund set to cover all pay, not just basic

C-Suite

Provident Fund set to cover all pay, not just basic

You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of “compensation” that will include all your allowances, amid intense lobbying against the move by industry bodies, a Times of India report said.

You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of “compensation” that will include all your allowances, amid intense lobbying against the move by industry bodies, a Times of India report said.

Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of "matching" provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances.

Read the full report here

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Topics: C-Suite, #Updates

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