Your take-home salary may go up as govt moots cut in PF contribution, says report

The suggestion is part of the proposed Employees’ Provident Fund and Miscellaneous Bill, 2019.

There is a separate proposal which will allow employees to switch between the Pension Fund Regulatory and Development Authority-run National Pension Scheme (NPS) to the Employees Provident Fund Organisation (EPFO) scheme.

Presently, the mandated EPF contribution is 24 percent of basic pay, divided equally between employers and employees. It is compulsory for employees to earn Rs 15,000 a month and for employers with at least 20 workers.

"To instil discipline in the working of assessing officers, the government has suggested a time period of two years for inspectors to conclude their inquiries, under this Act. Otherwise, inspectors will have to submit reasons in writing to the EPFO’s central provident fund commissioner," the ministry added.

This update is in sync with the Pradhan Mantri Shram Yogi Maan Dhan pension scheme unveiled for unorganised sector workers. A draft of the Amendment Bill dated August 23 has been circulated and will be open for comments up to September 22.