POSTED BY February 8, 2013 11:44 am COMMENTS (5)
ONHi All,
I read news about PF,with 12% deduction from Gross salary instead of Basic.
It will reduce take home salary,not sure abt the getting back from Govt changing rules every year.
Is there any way to stop PF contribution or reducing PF contirbution amount if this new rule is imposed?
Regards,
Raju
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Dear Raju, if your employment comes within the regulation of PF act. you can not escape from this Axe. As on date, the matter is postponed, so relax. You may negotiate your salary structure structure within the same CTC, if your employer permits to minimize the impact.
thanks
Ashal
Currently decision has been postponed .Employees engaged on CTC basis will have more impact on take home,but in long term it will be benefited if you are able to manage because it will be exempted from tax ,secondly more fund will be available for retirement. Vikas
If Govt says at some time in Future, Employees cant withdraw all PF money after retirement ,has to contribute to some war, country debt or infrasturcture development etc..Anything can happen with Govt decisions..All your retirement savings are vanished, i have seen situations where Govt cancelled scholarships due to Kargil War,funds diverted to defence
Taking 12% of Gross is big burden on my take home salary, again Employer will cut from our CTC only, they will not increase their share,instead i can go with ELSS mutual funds instead of EPF..
and i think , if it happens, the contribution from employer would increase , and thus retirement kitty. so not bad.
I thought this kept in abeyance as of Dec. 1 2012? If it is imposed then not much one can do with the mandatory contribution. Don’t understand what you mean by
“not sure abt the getting back from Govt changing rules every year”