The Madhya Pradesh high court's ruling that employee benefits, such as house rent and conveyance allowances, should be taken into account While computing the employee provident fund contributions. It may soon be implemented all over India.
Mr. Samirendra Chatterjee , Central Provident Fund Commissioner said, ''The Madhya Pradesh high court's ruling was conveyed to EPF offices in the Madhya Pradesh state, but he said it could be implemented all over the country in consultation with the ministry of labour."
The ruling marks a shift from the present arrangement where the employees have to contribute 12% of their basic salaries while the employers have to match the contributions. Acccording to the new order will mean higher retirement corpus for employees. Same it some extra amount go EPF account, though it would result in a cut in their take-home package. But it will also bring additional burden on the companies.
Meanwhile Mr. Michael Dias, Secretary of The Employers Federation (Delhi) said, "Most of the employers will have to stop salary hikes"
Mr. Samirendra Chatterjee , Central Provident Fund Commissioner said, ''The Madhya Pradesh high court's ruling was conveyed to EPF offices in the Madhya Pradesh state, but he said it could be implemented all over the country in consultation with the ministry of labour."
The ruling marks a shift from the present arrangement where the employees have to contribute 12% of their basic salaries while the employers have to match the contributions. Acccording to the new order will mean higher retirement corpus for employees. Same it some extra amount go EPF account, though it would result in a cut in their take-home package. But it will also bring additional burden on the companies.
Meanwhile Mr. Michael Dias, Secretary of The Employers Federation (Delhi) said, "Most of the employers will have to stop salary hikes"
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