Reduction in EPF contribution could pose as a risk in the long run

Employees need to save at least 20% of their gross salary to build a reasonable retirement corpus. The later you start, the more you need to save

Employees within the organised sector may soon get the option to reduce their contribution to Employees’ Provident Fund (EPF), which currently stands at 12 per cent of their basic salary. This provision, according to media reports, is a part of the Social Security Code Bill, 2019, which has received Cabinet approval. Also, the Labour Ministry has dropped its earlier proposal to allow employees to switch from the Employees’ Pension Scheme (the pension portion of EPF) to the National Pension System (NPS). 

Reduction in EPF contribution: The government is taking this step to put more money in employees’ hands so that they