The Government announced the Lower PF Rates for new women employees will be 8% for the first three years.
New Delhi: Union Finance Minister Arun Jaitley presents the Union Budget at Parliament.
Women workers' contribution towards PF will reduce to 8% for the first three years, without employer's contribution reducing.
This will allow more women to get into the formal economy.
"Proposed changes to PF scheme by way of Government PF contributions for new employees and reduced PF Contributions by employers.
For women for the 1st three years will help in promoting employment growth".
The Government claimed that such measures in the past have paid dividends and would result in the creation of 70 Lakh Jobs this year as per an independent study.
In the Budget Speech Finance Minister said that "To incentivise employment of more women in the formal sector and to enable higher take-home wages, the Government propose to make amendments in the EPF and Miscellaneous Provision Act 1952, to reduce women employees' contribution to 8% for 1st three years of their employment against existing rate of 12% with no change in employers' contribution".
Top HRM solution for efficient and smooth management of employees and payrolls. It is a complete HR management platform that helps companies build a happier and productive workforce with a suite of apps that for easy employee monitoring.
For New Women Employees
If you are a woman who is about to join the workforce, rejoice!!!!
This Budget has provided Lower PF Rates for new employees for the 1st three years of their employment.
Previously, 12% of your basic salary & DA would have been diverted to PF.
Under the new rules, only 8% will be diverted, which means that your take-home pay will increase.
The employer contribution12% doesn't decrease so your total savings in the provident fund when you retire doesn't decrease dramatically.
Under PF Scheme
An employee who is drawing 'pay' above Rs.15,000/- can become a member with permission of Asst PF Commissioner if he/she and his/her employer agree.
The contribution paid by the employer is 12% of basic wages plus DA plus retaining allowance and 12% contribution paid by the employee.
To check out the previous HRAPP blog please check the below link
HRAPP is an intuitive cloud-based HRMS solution with a complete suite of features. We want to disrupt the HR Tech Space for better and equip HRs and employees with an end-to-end platform that is as interactive as social media, yet powerful enough to handle all HR tasks effortlessly.
PF Withdrawal Rules EPF or Employee Provident Fund should only be withdrawn at the time of retirement. To encourage subscribers to transfer their money to a new PF account rather than withdraw the sum, EPFO (Employees' Provident Fund Organisation) has taken many initiatives. EPFO's "One Member - One EPF Account" facility can be availed by subscribers […]
Registration of beneficiaries under PMRPY scheme expires on 31st March 2019. Registration may not be possible after 1st April 2019. About PMRPY Benefit Scheme PMRPY-Pradhan Mantri Rojgar Protsahan Yojana launched on 9th August 2016 with an objective to incentivize employers for the creation of employment. Under the scheme, the Government paying full employers' contribution of […]
On the finish of every financial year, many taxpayers frantically make investments to cut down taxes, without adequate abilities of the more than a few available options. The earnings Tax Act offers many extra incentives and allowances, apart from the fashionable 80C, which would decrease tax liability radically for the salaried members. listed below are […]
Sign up now for Remote Employee Monitoring Solution
Remote employee monitoring, including time tracking, is a vital tool in a business’s drive to be successful and productive. Whether it’s a permanent move or if you’re transitioning to remote work temporarily in an effort to limit exposure to COVID-19, monitoring can take the assumptions out of distributed teamwork.