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 mentioned 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 might be relevant for the following three months, Ms Sitharaman added.
All institutions below the Employees’ Provident Fund Organisation (EPFO) will take pleasure in the advantages of this scheme, Ms Sitharaman mentioned.
However, state and central governments will proceed to pay 12 per cent in the direction of PF contribution, at the same time as these employed by them will take pleasure in the advantage of paying 10 per cent solely.
Besides, the federal government additionally prolonged, for additional three months, the PF-related profit for smaller companies, which had been introduced below the Pradhan Mantri Garib Kalyan Yojana in March. Under 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, is not going to must pay the PF contribution, as will probably be lined by the