Budget 2018 Proposal
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
Kindly find the related link below: