How Does the New Optional PF Contribution Affect Employees and Employers?

In an employee-friendly move, the government today made provident fund contribution optional for workers earning a salary below a certain threshold. However, the employer will continue to contribute their share of the PF irrespective of the worker opting not to pay their contribution. “For employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer’s contribution,” Finance Minister Arun Jaitley said in his budget speech. Please let me know in detail, thank you. Source: http://www.financialexpress.com/arti...ployees/48970/ http://articles.economictimes.indiat...act-withdrawal

Hi,

Please clarify whether this scheme of optional for employee share is applicable or not. We need to implement it in our company if it is allotted. Please reply.

Hi, Sridhar, it's not yet finalized the amount "For Employees Below A Certain Threshold Of Monthly Income." We have to wait until the end of July for the final announcement. Thank you.