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Dear All Pl. find attachxed herewith a Braking News for EPFO related.

Attached Files
File Type: pdf BREAKING NEWS 10%.pdf (82.8 KB, 15 views)

Thank you all for reply. Yes its applicable from May .
EPF contribution reduced to 10% for establishments other than those covered under PMGKY - Pradhan Mantri Garib Kalyan Yojana for the months May, June & July, 2020.
As per Press Information Bureau - PIB Delhi Posted On: 19 MAY 2020 6:32PM
"In Cost to Company (CTC) model, if Rs.10000/- is monthly EPF wages, in CTC Model the employee gets Rs.200/- more directly from employer as employer’s EPF/EPS contribution is reduced and Rs.200/- less is deducted from his/her wages".
That means if the employee who is contributing 12% on Rs.15K of Rs.1,800/- will contribute 10% of Rs,1,500/- and this difference in CTC of Rs.300/- the Company need to pay to the employee alongwith salary. Thus the employee will get higher salary of Rs.600/-, 300/- by way of reduced deduction and Rs.300 from employer as a part of CTC. (This is ridiculous, Govt. should have remain silent on CTC Part) Many Companies have paid full salary during lockdown period without any income.
Suresh


Attached Files
File Type: pdf PIB.gov.in_PressReleasePage.aspx_PRID_1625152.pdf (35.7 KB, 15 views)

Please confirm how much % of EPF contribution employee will benefited ? 2% or 4% means only employee share or both employee & employer?
The employee under a CTC system will get 2% of employer's contribution in the form of an allowance (obviously a taxable allowance) for three months. He will gt a liquidity of 2%, ie, 2% more than what he was getting till April 2020. For an organisation which restricts contribution at 12% of Rs 15000, the maximum liquidity is Rs 300. What this amount reflects to your liquidity? At the same time, the Personnel/HR Officer has to do some additional clerical work to find out 2% and add it to the other allowances.
Dear All
As per the attached FAQ from PF office, Answer to Q.12, the Govt has given employee and employer both an option to keep contributing at 12% if they want. Please act accordingly.
Employee may approach you requesting to keep his future saving intact as this (reduction to 10%) is not going to make a big difference in his take home,rather will increase his tax liability.
The 2% of employer share will be taxable at one hand and on other hand he may fall short of his investment under section 8oC.
Regards
Puran Dangwal


Attached Files
File Type: pdf Provident Fund FAQs May 2020.pdf (1.13 MB, 12 views)

FAQ belongs to this post. The EPF posted FAQs on their website. Can visit for more updates.

Attached Images
File Type: jpg EPF faq.jpg (391.3 KB, 8 views)
File Type: jpg EPF faq2.jpg (369.0 KB, 5 views)
File Type: jpg EPF3.jpg (157.1 KB, 5 views)


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