NEW DELHI: The labour ministry on Tuesday said employees can contribute more than the newly set limit of 10 per cent of basic wages to their Employees’ Provident Fund (PF) account for the next three months, but employers don’t need to match the higher contribution.
In a statement, the ministry said, “Under the EPF Scheme, 1952, any member has the option to contribute at a rate higher than statutory rate (10 per cent) and employer can restrict his contributions 10 per cent in respect of such employee.”
Employer contributions to the social security scheme run by the EPFO shall be 10 per cent of the wages of May, June and July due in June, July and August, respectively, the statement explained.
The ministry on Monday notified lower rates of provident fund contribution at 10 per cent, increasing the in-hand salary of 4.3 crore provident fund subscribers.
Last week, Finance minister Nirmala Sitharaman had announced the reduction of statutory provident fund contribution by both…
