Dear All ,
Kindly Note - " PF CONTIBUTION MAY COVER HOUSE RENT & COVEYANCE ALLOWANCE"
The Madhya Pradesh high court's ruling that employee benefits, such as house rent and conveyance allowances, should be taken into account while computing the employee provident fund contributions may soon be implemented all over the country.
Central provident fund commissioner Samirendra Chatterjee said the ruling was conveyed to EPF offices in the state, but he said it could be implemented all over the country in consultation with the ministry of labour.
The ruling marks a shift from the present arrangement where the employees have to contribute 12% of their basic salaries while the employers have to match the contributions.
The new order will mean higher retirement corpus for employees though it would result in a cut in their take-home package. But it will also bring additional burden on the companies.
Source - Hindustan Times
Cordially
Subin Chandran