Know About EPF Contribution
Most Indians have been stricken with the recent popular issue concerning the EPF contribution therefore the employees are not given their complete salary amount. This issue has become compulsory for them to contribute a certain salary percentage to their own scheme. This has made some people experience a problem especially those earning low salary since their payment has been deducted causing it to be less sufficient to cater for to all the monthly expenses. Therefore most people are been driven to accumulate debt. The country is quite cautious when it comes to debt situations but they have been reluctant to help employees in this kind of situation.
According to the recent budget, some people have received some relief. Earlier the employees were required to contribute 12% of the salary to the fund. The employers had to make the same amount of contribution to the fund. Besides the fund the employees were required to make a contribution of 8.33% to the pension for every employee.
The acquired relief in the EPF contribution
The recent budget has come with some relief particularly pertaining to employees and their salaries. The department earlier experienced several issues particularly when dealing or handling the amount of legal aggravations. It was almost impossible for employees to penetrate through. The numerous issues have been recently handled properly and dealt with conveniently thus eliminating most worries. There is a lot of hope that most employers and employees will benefit from this so much.
One of the primary highlights largely include the option to not pay taxes if your monthly income is less than Rs.30,000.this is also applicable to all senior citizens so that they can be able to adequately take care of themselves and their finances. Earlier the senior citizen were required to also make payments every month to the fund and afterward they would have a hard time accessing the account due to some legal issues. This did not make much sense at all.
Another proposal which was presented was to enable employees make the decision on how they would prefer to receive their salary. This proposal is however still in the development stages and would have to companies plus their stakeholders’ opinions before coming up with the final decision. If it is implemented it will be of very great advantage to the employees. This is due to the employees being allowed to make a choice between Employees state insurance establishment or insurance products pertaining to health. It will also be able to allow them to make other decision that are vital involving their salary contribution.Sponsored Links
With such favorable proposal being formulated, the government has greatly made it easier for people to work for organization and various businesses much more rewarding to the Youngsters who make up to being the largest population any country has. With such kinds of initiatives, the rate of migration to other various countries will decrease and the people will be able to save more money and be comfortable working in their own county.