Has it happened to you too that your company told you in CTC how much PF i.e. Provident Fund money will be deducted from your salary but when you left the company, you came to know that some money has not been deposited in your PF account? So now this will not happen, because the government or rather the EPFO that handles your PF money will keep giving you updates from time to time.
The Employees Provident Fund Organisation (EPFO) continues to inform people about their monthly dues, based on which the employee can get this information from the HR department or the finance department of his company. But now this system is going to become more robust.
EPFO should develop a digital system
Union Minister Mansukh Mandaviya on Friday met officials of the Employees Provident Fund Organisation (EPFO) and directed them to develop a system to inform members (employees) about their Provident Fund (PF) deductions on a regular basis.
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The Labour and Employment Minister said that this move will bring transparency in the EPF deduction. This will also increase trust between the employer and the employee. In a statement issued by the Labour Ministry, it was said that Mansukh Mandaviya has directed the EPFO to implement a robust and transparent system for all members regarding the Employees Provident Fund (EPF) deduction.
He has asked the EPFO officials to develop an effective and timely digital system. This system is important to inform the employees regularly about the PF deduction made from their salary.
PF participation in its CTC
As per the Employees Provident Fund norms, 12 per cent of the amount earned by combining basic salary and house rent allowance is deducted from your gross salary and deposited in your EPF account. The remaining salary is your disposable salary.
Your company has to deposit only 12 percent of the money, which is actually part of your CTC, i.e. the company’s cost 2. A part of this total 24 percent also goes to your pension account.
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I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
