Budget 2016:The Chronicle of Leaking Wallets and Resurrected Savings
Employee Provident Fund (EPF) turns into ‘Employee Profit Forum’
Yes, that’s true! Previously, 12% of an employee's basic salary would go towards his EPF account while the employer also contributes an equal amount. However, not all amount of employer's contribution moves into employee's EPF but only 3.67% is diverted into it. The balance that is 8.33% of employer's monthly contribution moves into employee's pension scheme (EPS). Budget 2016 will now see the government pay 8.33 per cent for all new employees for first three years of employment for which a total of INR 1,000 crore has been allocated.
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