PF new rule 10% deduction

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The Indian government has reduced the Provident Fund (PF) deduction from 12% to 10% for both employers and employees. This change clarifies that the difference is not credited to employee bank accounts. Instead, the 10% deduction from both parties is paid into the EPF account, and the government is not providing an additional 4% credit for May, June, and July 2020.

amruth

amruth (Querist)

25 May 2020 Hi All

Now government of India reduced PF from 12% to 10% for both employer and employee.

My question is 2% of employer and 2% of employee saving amount should be credited to employee bank account every month.

And another question is in our PF account 2% employer and 2% employee this 4% government will credit the PF account to become 24% means Indian Government helping us 4% for three months May, June and July 2020

Thanking you
Amruth Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 May 2020 1 No need of 4% credit to employees bank account. Deduct 10% pf and add 10% of employer contribution and pay to EPF.
2 Indian government will not pay 4%.

amruth

amruth (Querist)

27 May 2020 Thanks Sir i got it.

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