PROVIDENT FUND

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.
60 Points Posted on 14 May 2020
Is there any benefit of provident fund to employers?
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On 14 May 2020 at 13:24 Report
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This discussion explores whether there are any benefits of the Provident Fund (PF) for employers. While a recent reduction in the employer's PF contribution rate from 12% to 10% might seem beneficial, it often means the employer must pay the 2% difference back to employees as a taxable allowance. If the employer's PF contribution is already factored out of the employee's CTC, then there can be a direct benefit to the employer.

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Assistant
1095 Points Posted on 14 May 2020
Yes.....
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On 14 May 2020 at 14:40
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.
60 Points Posted on 14 May 2020
Can you enumerate any one?
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On 14 May 2020 at 14:51
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Assistant
1095 Points Posted on 14 May 2020
R u asking regarding yesterday changes?
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On 14 May 2020 at 14:54
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.
60 Points Posted on 14 May 2020
Not specifically, but in general.
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On 14 May 2020 at 15:04
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Assistant
1095 Points Posted on 14 May 2020
Https://m.economictimes.com/wealth/invest/cut-in-employers-epf-contribution-may-mean-net-loss-for-the-employees/articleshow/75730688.cms
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On 14 May 2020 at 15:09
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Executive Finance & Accounts
101 Points Posted on 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 

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On 18 May 2020 at 15:41
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.
60 Points Posted on 18 May 2020
Thanx
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On 18 May 2020 at 15:50
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Assistant
1095 Points Posted on 18 May 2020
Tera issue solve ho gaya na?
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On 18 May 2020 at 15:58
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Executive Finance & Accounts
101 Points Posted on 20 May 2020

Hi 

See the  latest notifications in this regard. 

It is effective for wage months May, June and July

Regards

Puran Dangwal

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On 20 May 2020 at 09:09
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Executive Finance & Accounts
101 Points Posted on 20 May 2020

One more from Gazette of India.

 

Regards

Puran Dangwal 

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On 20 May 2020 at 09:10

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