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Take-home salary may rise under new Employees' Provident Fund law

At present, 24 per cent of a worker's basic pay is deducted - with 12 per cent each counted as employer's and employee's share - towards the EPF savings

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3 min read Last Updated : Aug 27 2019 | 1:22 AM IST

The government has proposed to reduce the contribution made by employees towards the Employees’ Provident Fund (EPF), in a move to increase take-home salary.

The government wants to reduce the rate of contribution — part of the employee’s share — for a class of workers depending upon age, income or gender, without changing the contribution from the employer’s share. The proposal is part of the proposed Employees’ Provident Fund and Miscellaneous Bill, 2019.

The ministry has also proposed providing an option to workers to switch between the pension scheme, monitored by the Employees’ Provident Fund Organisation (EPFO), and the National Pension System

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