Foreigners working across India and domestic employees with a basic monthly pay of up to Rs 6,500 may see a dip in their take-home salaries if the law ministry agrees to a plan to club allowances with basic pay to calculate the Provident Fund dues, Economic Times reported. The labour ministry has sought the law ministry's opinion on a circular issued by the former central PF commissioner RC Mishra on his last day in office on November 30, 2012.

The labour ministry, which had asked the circular to be kept on hold a fortnight after it was issued, has approached the law ministry after a working group appointed by it approved the proposals with minor modifications. India Inc and the finance ministry have earlier expressed concerns about the proposed changes in the EPF Organisation's compliance and enforcement norms.

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