Save more in provident fund, but take home less as salary

 

MUMBAI: A recent circular issued by the Employees Provident Fund Organisation - which comes under the ministry of labour and employment - will reduce the take home pay of salaried employees. As per this circular, various allowances paid to employees will have to be added back to the basic salary and provident fund contributions computed against this higher value. This, in turn, will mean a lower take home pay.

The circular dated November 30, 2012, was issued after internal review meetings held in late November and has been forwarded to Employee Provident Fund offices across India.




Historically, most companies have been computing provident fund (PF) contributions (at 12% each by the employer and employee) against basic salary and dearness allowance only. However, the definition of basic wages has been a contentious issue, with PF authorities claiming that companies split the basic wages into various allowances to reduce the quantum of PF contributions.

For more news visit our page : Magazine, Urdu News, asianaffairs

Urdu news                    world urdu news                  News magazine         current issues

Whole middle east           Political magazine      Social affairs                world news

Related tags:

Latest news, world news, current affairs, breaking news, arab country news, daily news, Islamic news, india news, Pakistan news, , india Pakistan news, current news, news headlines, Latest World News,Articles,

Latest news, latest urdu news, world news, current affairs, breaking news, arab country news, sport news, cricket news, daily news, Islamic news, india news, Pakistan news, india Pakistan news, current news,Current affairs, Economic Affairs,Islam and Human Rights, Islam and Politics , Islam and the West, Muslim Media, Islamic Society, Islamic World,Latest World News,  breaking news ,Top Breaking News, Current Affairs, daily news, recent news, news headlines