Take Home Salary hit as PF Diverted to the Market and the Act should be passed in the Monsoon Session of Parliament!
Moreover, the ministry has also proposed that PF deduction must increase to 12% from the current limit of 10%.
Labour reforms passed ,to be passed which have not been already passed and now your savings have no future.
No political party,No Trade union to save you when you retire and need money for your survival or you have an emergency to address as you would never get the money you saved for future or emergency.
Excalibur Stevens Biswas
Hectic world wide Honeymoon heralds the Achhe Din for Malaidaar Organised and hand to mouth Non Organised sector employees as you would never get the hard earned life long savings,your PF when you need it most just because the RSS hegemony of fascism diverts it to the share market,most volatile.Moreover, total salary is put on stake as PF to be deducted for all your allowances at the rate of Twelve percent.
Celebrate! As killing cows is banned and a bhavya dunia kaa sabse bada Mandir is to be erected in Bihar,the old Magadh.If not Ram Mandir.It is Hindu Rashtra with cent percent Hindutva!
All Bajrangees should distribute laddoos to the so much so happy employees who never dared to raise their voice while their own friends lost their job and their PSU Divested.
Take Home Salary hit as PF Diverted to the Market and the Act should be passed in the Monsoon Session of Parliament.Labour reforms passed ,to be passed which have not been already passed and now your savings have no future.No political party,No Trade union to save you when you retire and need money for your survival or you have an emergency to address as you would never get the money you saved for future or emergency.
Moreover, the ministry has also proposed that PF deduction must increase to 12% from the current limit of 10%.
The paper reported that the amendments are already cleared by the EPFO's Central Board of Trustees and the Union Cabinet is expected to ponder over these in the Monsoon Session of the Parliament next month.
Thus ,Your salary is going to drastically reduce if the amendments proposed by the labour ministry are accepted by the Indian Parliament. No reform faced any road block in the Parliament while minority governments ruled India for two full decades and India is ruled by RSS or RSS linked Millionaire Billionaire corporate Funeded politics and corporates have to take away your salary to boost their capital.Hence,friend never hope against hope.
Business friendly RSS Government has all set to divert PF to Market in the best interest of Desi Videshi Companies and it has also managed to boost the booty as thehe labour ministry has proposed that contribution by companies towards their workers' EPF schemes would be a portion of "contributory wages" which will not include house rent and travel allowances.The result is simply disastrous as Your take-home salary is set to see a sharp cut with a labour ministry proposal to include house rent, gratuity, traveling and other allowances as part of the "contributing wages" on which provident fund would be deducted.You never know what amount you would get back as the money saved as PF deduction is subjected to the ever volatile share market.
According to a report in The Indian Express, labour ministry has said that house rent, gratuity, traveling and other allowances to be taken as part of "contributing wages". Provident fund is deducted on these contributing wages.
In the current structure, PF is deducted on basic wages.
What this effectively means is that contributing wages, as part of your salary, will increase if the amendments to the PF act are passed and as a result of which, the PF deduction on your salary will rise.
The concept of "contributory wages" for the purpose of PF deductions has been included in the employees provident funds and miscellaneous provisions (amendment) bill, 2015, which will soon be placed before the cabinet for approval.
The proposal is part of the final amendments of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, that has also sought to increase PF deductions to 12 per cent of the contributing wages from the current rate of 10 per cent.
Indian Express reports:The proposal is a significant change from the current practice, wherein PF is deducted only on the basic wages. Under the new proposal, even contributions to the related Employees' State Insurance Corporation will be part of the "contributing wages" on which PF will be deducted.
The proposal comes due to the different wage structures followed by establishments and High Court rulings. "To bring uniformity and transparency in the calculation of contribution payable by the employers, the definition of the contributing wages is proposed to be included. Specific details of allowances included or excluded for the purpose of PF contribution have been mentioned to avoid any ambiguity," said the labour ministry.
It has also called for a significant expansion of the coverage of the scheme to include establishments with up to 10 workers, all types of establishments as well as all kinds of employees including those on contract and apprentices.
These amendments have already been cleared by the EPFO's Central Board of Trustees and are expected to be taken to the Union Cabinet by next month and tabled in Parliament in the Monsoon Session.
"The bill has been firmed up. It will be sent for cabinet approval so that it could be introduced in the monsoon session of parliament," a senior labour ministry official said. The final draft, prepared by the labour ministry, is significant dilution of concept of clubbing wages proposed by the labour unions.
Money guruindia reports:While the unions wanted that 12 per cent PF contribution by the employers should be on total take home salary, the employers were opposed to the idea as it would have increased their PF liability and reduced workers' pay.
The final draft has proposed that PF contribution made by employers would be a portion of contributory wages which will not include HRA, travel allowance, allowance to defray special expenses entailed on workers by nature job, gratuity.
As per the bill the contributing wages means all remuneration paid or payable to an employee in terms of the contract of employment, express or implied, and will include any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months.
The proposed bill also provides one-time option to EPFO subscribers to choose between EPF and new pension scheme. Finance minister Arun Jaitley had made announcement regarding providing an option to formal sector workers to choose between EPF and NPS in his budget speech.
At present formal sector workers are covered under social security schemes run by Employees Provident Fund Organisation (EPFO) as per the Employees Provident Funds & Miscellaneous Provisions Act 1952. The proposed Section 16-B provides that workers opting for NPS shall be deemed to have exited from the Employees' Provident Fund Scheme, Employees' Pension Scheme, Employees' Deposit Linked Insurance Scheme or any other scheme notified under this act from the date of submission of the application.
The bill also provides for a definition of 'small establishment' which employ less than 40 workers. These firms' cash in bank or hand, plant and machinery and office equipment critical to function, would be protected from attachment under the Act for recovery of PF dues for 90 days from date of issue of recovery certificate to these firms.
The draft bill also provides flexibility to increase or decrease the mandatory contribution of 8.33 per cent of basic wages toward employees' pension scheme.
Moreover, the ministry has also proposed that PF deduction must increase to 12% from the current limit of 10%.
Labour reforms passed ,to be passed which have not been already passed and now your savings have no future.
No political party,No Trade union to save you when you retire and need money for your survival or you have an emergency to address as you would never get the money you saved for future or emergency.
Excalibur Stevens Biswas
Hectic world wide Honeymoon heralds the Achhe Din for Malaidaar Organised and hand to mouth Non Organised sector employees as you would never get the hard earned life long savings,your PF when you need it most just because the RSS hegemony of fascism diverts it to the share market,most volatile.Moreover, total salary is put on stake as PF to be deducted for all your allowances at the rate of Twelve percent.
Celebrate! As killing cows is banned and a bhavya dunia kaa sabse bada Mandir is to be erected in Bihar,the old Magadh.If not Ram Mandir.It is Hindu Rashtra with cent percent Hindutva!
All Bajrangees should distribute laddoos to the so much so happy employees who never dared to raise their voice while their own friends lost their job and their PSU Divested.
Take Home Salary hit as PF Diverted to the Market and the Act should be passed in the Monsoon Session of Parliament.Labour reforms passed ,to be passed which have not been already passed and now your savings have no future.No political party,No Trade union to save you when you retire and need money for your survival or you have an emergency to address as you would never get the money you saved for future or emergency.
Moreover, the ministry has also proposed that PF deduction must increase to 12% from the current limit of 10%.
The paper reported that the amendments are already cleared by the EPFO's Central Board of Trustees and the Union Cabinet is expected to ponder over these in the Monsoon Session of the Parliament next month.
Thus ,Your salary is going to drastically reduce if the amendments proposed by the labour ministry are accepted by the Indian Parliament. No reform faced any road block in the Parliament while minority governments ruled India for two full decades and India is ruled by RSS or RSS linked Millionaire Billionaire corporate Funeded politics and corporates have to take away your salary to boost their capital.Hence,friend never hope against hope.
Business friendly RSS Government has all set to divert PF to Market in the best interest of Desi Videshi Companies and it has also managed to boost the booty as thehe labour ministry has proposed that contribution by companies towards their workers' EPF schemes would be a portion of "contributory wages" which will not include house rent and travel allowances.The result is simply disastrous as Your take-home salary is set to see a sharp cut with a labour ministry proposal to include house rent, gratuity, traveling and other allowances as part of the "contributing wages" on which provident fund would be deducted.You never know what amount you would get back as the money saved as PF deduction is subjected to the ever volatile share market.
According to a report in The Indian Express, labour ministry has said that house rent, gratuity, traveling and other allowances to be taken as part of "contributing wages". Provident fund is deducted on these contributing wages.
In the current structure, PF is deducted on basic wages.
What this effectively means is that contributing wages, as part of your salary, will increase if the amendments to the PF act are passed and as a result of which, the PF deduction on your salary will rise.
The concept of "contributory wages" for the purpose of PF deductions has been included in the employees provident funds and miscellaneous provisions (amendment) bill, 2015, which will soon be placed before the cabinet for approval.
The proposal is part of the final amendments of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, that has also sought to increase PF deductions to 12 per cent of the contributing wages from the current rate of 10 per cent.
Indian Express reports:The proposal is a significant change from the current practice, wherein PF is deducted only on the basic wages. Under the new proposal, even contributions to the related Employees' State Insurance Corporation will be part of the "contributing wages" on which PF will be deducted.
The proposal comes due to the different wage structures followed by establishments and High Court rulings. "To bring uniformity and transparency in the calculation of contribution payable by the employers, the definition of the contributing wages is proposed to be included. Specific details of allowances included or excluded for the purpose of PF contribution have been mentioned to avoid any ambiguity," said the labour ministry.
It has also called for a significant expansion of the coverage of the scheme to include establishments with up to 10 workers, all types of establishments as well as all kinds of employees including those on contract and apprentices.
These amendments have already been cleared by the EPFO's Central Board of Trustees and are expected to be taken to the Union Cabinet by next month and tabled in Parliament in the Monsoon Session.
"The bill has been firmed up. It will be sent for cabinet approval so that it could be introduced in the monsoon session of parliament," a senior labour ministry official said. The final draft, prepared by the labour ministry, is significant dilution of concept of clubbing wages proposed by the labour unions.
Money guruindia reports:While the unions wanted that 12 per cent PF contribution by the employers should be on total take home salary, the employers were opposed to the idea as it would have increased their PF liability and reduced workers' pay.
The final draft has proposed that PF contribution made by employers would be a portion of contributory wages which will not include HRA, travel allowance, allowance to defray special expenses entailed on workers by nature job, gratuity.
As per the bill the contributing wages means all remuneration paid or payable to an employee in terms of the contract of employment, express or implied, and will include any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months.
The proposed bill also provides one-time option to EPFO subscribers to choose between EPF and new pension scheme. Finance minister Arun Jaitley had made announcement regarding providing an option to formal sector workers to choose between EPF and NPS in his budget speech.
At present formal sector workers are covered under social security schemes run by Employees Provident Fund Organisation (EPFO) as per the Employees Provident Funds & Miscellaneous Provisions Act 1952. The proposed Section 16-B provides that workers opting for NPS shall be deemed to have exited from the Employees' Provident Fund Scheme, Employees' Pension Scheme, Employees' Deposit Linked Insurance Scheme or any other scheme notified under this act from the date of submission of the application.
The bill also provides for a definition of 'small establishment' which employ less than 40 workers. These firms' cash in bank or hand, plant and machinery and office equipment critical to function, would be protected from attachment under the Act for recovery of PF dues for 90 days from date of issue of recovery certificate to these firms.
The draft bill also provides flexibility to increase or decrease the mandatory contribution of 8.33 per cent of basic wages toward employees' pension scheme.
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