As reported by money control, Ministry of Labour and Employment has recommended reducing the contribution made by employees towards the Employees’ Provident Fund (EPF).
Presently, the mandated EPF contribution is 24 percent of basic pay, divided equally between employers and employees. The above-made suggestion is a part of the proposed Employees’ Provident Fund and Miscellaneous Bill, 2019.
It has been stated that once there would be a reduction in worker’s contribution to the Employees’ Provident Fund (EPF) it would result in the improvement of their in-hand-salaries.
Another proposal is allowing employees to switch between the Pension Fund Regulatory and Development Authority-run National Pension Scheme (NPS) to the Employees Provident Fund Organisation (EPFO) scheme.
A preliminary draft of the EPF and MP (Amendment) Bill, 2019, dated August 23 has sought suggestions and comments until September 22, 2019.
[Source: MoneyControl]