Decision making final meeting today regarding deduction of PF from 12 to 10 percent
Posted on: 27/May/2017 2:31:22 PM
Presently, for the employees working in various organisations, the Provident Fund at 10 percent of the basic pay is deducted every month from the employee salary as the Employee Provident Fund for the future.
An equivalent amount is contributed to the employees` provident fund account by the employer company regarding the PF pension plan or PF-related insurance coverage.
Even if there are no other savings by the employee, this Provident Fund deducted every month from the salary would become handy for their future.
In this situation, information is gathered from the ministry of labour that a meeting is being held today (Saturday, 27th May) by the EPFO (Employee Provident Fund Organisation) at Pune and a decision will be taken on a recent recommendation that the Provident Fund be reduced from the present 12 percent to 10 percent.
An official from the Labour Ministry department explained that by reducing the PF deduction from 12 to 10 percent, the employee stands to receive an additional amount of the monthly salary. This will help their monthly budget. This will lead to economic growth. It will also reduce the responsibility/financial burden of the employer.
However, the Employee Unions have strongly objected this proposal. BJP Mazdoor Association president informed that this decision is totally against the employee welfare and the union opposes it.
The secretary of AITUC told that by reducing the PF deduction from 12 to 10 percent, the employer burden is also reduced. It works out the benefit to the employees will be down from 24 percent to 20 percent.So, the employees stand to incur a loss of 4 percent for their future fund.
