EPF Contribution information for Employees Provident Fund | Importance of EPF for employees.
EPF is an acronym for Employee Provident Fund. Most of you have been stricken with recent popular issue concerning EPF contribution. In this employees are not given their total salary amount. This issue has become compulsory for employees to contribute a certain salary percentage for their own benefits.
This made some people experience a problem for those who earning low salary. Since their payment has been deducted it will be less sufficient to meet their monthly expenses. Therefore most people are been driven to make debt. Country is quite cautious when it comes to debt situations but they have been reluctant to help employees in this kind of situation.
According to recent budget, people got some relief. Earlier employees were required to contribute 12% of salary to fund. Employers had to make same amount of contribution to fund. Besides fund employers were required to make a contribution of 8.33% to pension for every employee.
Acquired relief in EPF contribution latest news from Government:
Recent budget has come with some new points related to employees and their salaries. Department earlier experienced several issues particularly when dealing or handling amount of legal aggravations. It was almost impossible for employees to penetrate through. Number of issues have been recently handled properly and dealt with conveniently thus eliminating most worries. There is a lot of hope that most employers and employees will benefit from this so much.
One of important points was making tax exemption if your monthly income is less than Rs.30,000. This is also applicable to all senior citizens so that they can be able to adequately take care of themselves and their finances. Earlier senior citizens were required to make payments every month to fund and afterward they used to have a hard time accessing account due to some legal issues.
Another proposal which was presented was to enable employees to decide on how they would prefer to receive their salary. This proposal is however still in budding stage and would have to take companies and their stakeholders’ opinions before coming up with final decision.
If it is implemented it will become a great advantage to employees. This is due to employees being allowed to make a choice between Employees state insurance establishment or insurance products pertaining to health. It will also be able to allow them to make other decisions that are vital involving their salary contribution.
With such favorable proposal being made, government has greatly made it easier for people to work for organization and various businesses much more rewarding to Youngsters who make up to being largest population any country has.
With such kinds of initiatives, Brain drain can also be eradicated and people will be able to save more money and be comfortable working in their own county.
Know about EPF Withdrawl also