I wanted to announce a new rule that new employees' EPF contribution of 12% will be paid by the Government for up to three years. Is it possible for the employee's salary deduction of 12% for PF to be paid by the Government? Please clarify.
From India, Anand
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3From India, Anand
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There is no rule that the government will bear 12% of contribution for the entire new employees. It is 8.33% being the payable to Pension Fund by the employer. Certainly, for the textile sector, the government contribution will be available for the 3.67% contribution payable to the Provident Fund also. The scheme aims at incentivizing employers who generate new employment. There are a few conditions.
1. It is applicable in respect of employees joined after 1-4-2016.
2. These employees should be new employees and should not have a UAN or PF cover in any earlier establishment.
3. Their salary should not be more than Rs 15,000.
4. The employer's contribution towards the Pension Fund will be paid by the government, and it will continue for 3 years.
5. The base for deciding whether there is any employment generation is the March return. As such, if you had 100 employees in March and in April, you have additional manpower and your employment strength has become 107, then the new employment generation is 7. Out of these seven, if, say 2 persons have UAN or were already PF members, then these two will not come under new employees, and only the rest 5 persons will be considered as newly generated employment. In respect of them, the employer need not pay his share of 8.33% for 3 years but only pay 3.67, which is towards the Provident Fund along with employees' share of 12%. Employees should invariably pay their share of 12% without fail. For the textile industry, the 3.67% is also paid by the government.
From India, Kannur
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1. It is applicable in respect of employees joined after 1-4-2016.
2. These employees should be new employees and should not have a UAN or PF cover in any earlier establishment.
3. Their salary should not be more than Rs 15,000.
4. The employer's contribution towards the Pension Fund will be paid by the government, and it will continue for 3 years.
5. The base for deciding whether there is any employment generation is the March return. As such, if you had 100 employees in March and in April, you have additional manpower and your employment strength has become 107, then the new employment generation is 7. Out of these seven, if, say 2 persons have UAN or were already PF members, then these two will not come under new employees, and only the rest 5 persons will be considered as newly generated employment. In respect of them, the employer need not pay his share of 8.33% for 3 years but only pay 3.67, which is towards the Provident Fund along with employees' share of 12%. Employees should invariably pay their share of 12% without fail. For the textile industry, the 3.67% is also paid by the government.
From India, Kannur
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Dear Sir,
You have mentioned the old rules in which the Government will pay EPS 8.33% of the employer's share. I am inquiring about the announcement of new rules in the February 2018 budget session. Finance Minister Mr. Jaitley announced that for new employees, the government will pay 12% of the contribution for up to three years, and female employees will have their PF deduction reduced from 12% to 8%.
Thank you.
From India, Anand
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You have mentioned the old rules in which the Government will pay EPS 8.33% of the employer's share. I am inquiring about the announcement of new rules in the February 2018 budget session. Finance Minister Mr. Jaitley announced that for new employees, the government will pay 12% of the contribution for up to three years, and female employees will have their PF deduction reduced from 12% to 8%.
Thank you.
From India, Anand
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What they speak in budget sessions may not all be implemented. You may wait for the notification. I have no idea about the 12% contribution by the government. Why the differentiation between females and males, I don't know. Females are equal to males, they say. Then why is their contribution only 8%? What happens to that 4% - will it be paid by the government?
From India, Kannur
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From India, Kannur
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Provident Fund - Excluded Employee - Definition.pdf