PROVIDENT FUND
PRIYA PRASHAR (.) (60 Points)
14 May 2020
Is there any benefit of provident fund to employers?
10 Replies
Nishant
(Assistant)
(1095 Points)
Replied 14 May 2020
Https://m.economictimes.com/wealth/invest/cut-in-employers-epf-contribution-may-mean-net-loss-for-the-employees/articleshow/75730688.cms
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 18 May 2020
Dear
If the query about FM announcement of reduction in the rate of PF Contribution from 12% to 10%, then
If the employee is hired on CTS basis i.e. employer share of PF is a part the CTC, then employer has to pay the differential 2% back to employee as special allowance etc. No benefit to employer. That 2%, earlier taxfree, now becomes taxable in this way.
if employer share of PF is out of the CTC, then it is a benefit to employer.
Regards
Puran Dangwal
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 20 May 2020
Hi
See the latest notifications in this regard.
It is effective for wage months May, June and July
Regards
Puran Dangwal
Attached File : 633451 20200520090902 provident fund 12 to 10 notification.pdf downloaded: 99 times
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 20 May 2020
One more from Gazette of India.
Regards
Puran Dangwal
Attached File : 633451 20200520091025 pf notification for 10 contribution rate for 3 months.pdf downloaded: 46 times
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