New EPF Rule: Changes In In-Hand Salaries And CTCs From May 2020

how-to-withdraw-epf-advance

Highlights: The Central Government update the EPF rules for 3 months starting May 2020 The Statutory rate of contribution has been dropped from 12% to 10% for both, the employees and the employers The Central Government has changed the Employees’ Provident Fund (EPF) rules for a total of three months starting from May which will result in an increased in the in-hand salary without a change in the total CTC (Cost To Company). This step was taken to ease up the liquidity pressure on both, employees and employers. The government…

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Top 5 announcements on EPF and income tax made by FM Nirmala Sitharaman

new-epf-announcement-nirmala

To deal with the COVID-19 pandemic Indian government has announced an Rs.20-lakh-crore economic stimulus package. This is designed after consulting with many stakeholders and is aimed to mitigate the impact of COVID-19 on the current economy of the nation. Top 5 announcements on EPF and income tax Taking ahead PM Modi’s vision of a “self-reliant India”, the honorable Finance Minister Nirmala Sitharaman made a series of important announcements with regards to personal finances measure to boost the economy. Here are the top five important announcements you should know: The deadline…

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No PF deduction from salary for three months

Provident Fund

The government of India is trying its best to support citizens in these tough times of lockdown. Amongst a series of benevolent steps taken by the government, now employee’s contribution towards PF will not be deducted from their salary for the next three months, provided the employers to fulfill certain conditions. Similar steps have been taken up by the government to help and support those who are below the poverty line, and daily wagers. Like, early withdrawal of funds from APY has been permitted, advance pension for three months also…

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March 5 can bring good news to EPF beneficiaries!

EPF Beneficiaries

The Central Board of Trustees (CBT) of EPFO, is the statutory body constituted by the Central Government to decide on matters related to EPF, including the rate of interest to be applicable. The rate of interest applicable on EPF deposits is revised every year, based on the income projections of EPFO. For instance, the applicable interest rate was 8.8% for FY 2015-16, 8.65% for FY-2016-17, 8.55% FY-2017-18, and 8.75% for FY 2013-14 and FY 2014-15. The board assesses the income projections of EPFO and thus decides on the applicable rate…

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EPFO: Update your exit date online!

EPFO Update

One must keep the EPF account updated as it is helpful in several ways, especially while applying for EPF withdrawal. Also, keeping the EPF status updated helps in showing and tracking continuity of service. Exit date is the date when you had quit your last employer, which is important information that EPFO seeks. Erstwhile, employees were dependent upon previous employers for updating their exit date, who may not cooperate. To take care of this problem, EPFO has facilitated employees with the freedom to update their exit date online. How can…

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