Labour ministry proposal: Take-home salary to take a hit after changes
Your take-home salary is set to see a sharp cut with a labour ministry proposal to include house rent, gratuity, traveling and other allowances as part of the “contributing wages” on which provident fund would be deducted. The proposal is part of the final amendments of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, that has also sought to increase PF deductions to 12 per cent of the contributing wages from the current rate of 10 per cent. These amendments have already been cleared by the EPFO’s Central Board of Trustees and are expected to be taken to the Union Cabinet by next month and tabled in Parliament in the Monsoon Session.
Your take-home salary is set to see a sharp cut with a labour ministry proposal to include house rent, gratuity, traveling and other allowances as part of the “contributing wages” on which provident fund would be deducted. The proposal is part of the final amendments of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, that has also sought to increase PF deductions to 12 per cent of the contributing wages from the current rate of 10 per cent. These amendments have already been cleared by the EPFO’s Central Board of Trustees and are expected to be taken to the Union Cabinet by next month and tabled in Parliament in the Monsoon Session.
Read Financial Express full report here.
