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Historical changes to be made in the PF rules, take home salary to increase

Thursday - August 29, 2019 11:26 am , Category : WTN SPECIAL
Modi Government to make big changes in the PF rules
Modi Government to make big changes in the PF rules

Now PF accounts to also be opened for servants and drivers; salaried people to take more salary to home

AUG 29 (WTN) - The Modi Government, which won a historical victory in the Lok Sabha elections, is now going to give a big gift to the employees and the self-employed. If we tell you that in the coming time, employees will be able to take more Take Home Salary to home. On the other hand, if we tell you that domestic servant, drivers and self-employed people will also have PF accounts then you must have been shocked after reading this.

Actually, this is going to happen under the new policies of Modi Government. What is the whole matter? Let us tell you in detail. As you know, the amount of PF matters to the jobbers. After retirement or at the time of employment, the amount of PF helps through financially in any casual work.

Both the employee and the employer contribute to the amount of PF deposited every month. Since the employee's contribution is also included in the amount of PF, his Take Home Salary is less. But if the contribution of the employee in the amount of PF deposited every month is less, then his Take Home Salary can be more.

In fact, the Ministry of Labor and Employment has suggested that the contribution of employees in the EPF should be reduced. The employees have been recommended to reduce their contribution to the EPF in the Employees Provident Fund and Miscellaneous Bill, 2019. 
If this recommendation of the Ministry of Labor and Employment is accepted, then it will increase the Take Home Salary of the employees. For your information, let you know that currently 24 per cent of the basic salary of the employee is deposited in the EPF. Of this, 12 per cent is deposited from the salary of the employee, and the remaining 12 per cent is deposited by the employer.

As per the current rules, the PF of an employee whose monthly salary is Rs 15,000 is required to be deducted. Similarly, companies that have at least 20 employees, such companies are required to deposit 12 per cent of the basic salary of their employees in the PF.

According to the recommendation of the Ministry of Labor and Employment, how much of the salary of the employees will be deposited in the EPF; it will be decided according to the age, sex and pay grade of the employee. However, the company's contribution to the EPF will remain the same as before. If the recommendations of the Ministry of Labor and Employment apply, it may reduce the contribution of employees in PF which will increase their Take Home Salary.

At the same time, the Modi Government can now implement the scheme of giving benefit of PF scheme to the servants, drivers and similar workers and self-employed. According to the information, the Ministry of Labor is preparing a proposal to make changes in the law related to Employees Provident Fund Organization soon. After amendment of this law, it will be implemented in the whole country.

For your information, let you know that according to the arrangement of the EPF right now, only the employees working in companies and government offices get the benefit of the PF scheme. Its scope does not include servants, drivers and self-employed people.

The Modi Government has launched the PM Shram Yogi Maan Dhan Pension Scheme. It is being said that the Government also wants to open the PF accounts of the self-employed, including servants, drivers and those doing such work, and contribute to them. However, the limit of contribution of 12 per cent for the PF of these people will not be kept. The limit of contribution to such people in such account will not be fixed. These people will be able to contribute with their consent.

It can be said that after the implementation of new rules in the PF by the Modi Government, it will increase the Take Home Salary of the employees; at the same time the PF accounts of the servants, drivers and self-workers will also be able to open, so that the amount of PF can be used in future.