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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Government Contribution to Employee Provident Fund (EPF)
There is no rule that the government will bear the entire 12% contribution for all new employees. The employer is responsible for an 8.33% contribution to the Pension Fund. However, in the textile sector, the government will cover the 3.67% contribution payable to the Provident Fund. This scheme aims to incentivize employers to generate new employment. There are a few conditions:
1. It applies to employees who joined after April 1, 2016.
2. These employees should be new and should not have a UAN or PF cover in any earlier establishment.
3. Their salary should not exceed Rs 15,000.
4. The employer's contribution towards the Pension Fund will be paid by the government for three years.
5. The base for determining employment generation is the March return. For example, if you had 100 employees in March and in April, your employment strength increased to 107, the new employment generation is seven. Out of these seven, if two persons have UAN or were already PF members, they will not be considered new employees. Only the remaining five will be considered as newly generated employment. For these five, the employer need not pay their share of 8.33% for three years but only the 3.67% towards the Provident Fund along with the employees' share of 12%. Employees must 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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There is no rule that the government will bear the entire 12% contribution for all new employees. The employer is responsible for an 8.33% contribution to the Pension Fund. However, in the textile sector, the government will cover the 3.67% contribution payable to the Provident Fund. This scheme aims to incentivize employers to generate new employment. There are a few conditions:
1. It applies to employees who joined after April 1, 2016.
2. These employees should be new and should not have a UAN or PF cover in any earlier establishment.
3. Their salary should not exceed Rs 15,000.
4. The employer's contribution towards the Pension Fund will be paid by the government for three years.
5. The base for determining employment generation is the March return. For example, if you had 100 employees in March and in April, your employment strength increased to 107, the new employment generation is seven. Out of these seven, if two persons have UAN or were already PF members, they will not be considered new employees. Only the remaining five will be considered as newly generated employment. For these five, the employer need not pay their share of 8.33% for three years but only the 3.67% towards the Provident Fund along with the employees' share of 12%. Employees must 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