Stopping PF Account or reducing % of contribution?

POSTED BY raju ON February 8, 2013 11:44 am COMMENTS (5)

Hi 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?




5 replies on this article “Stopping PF Account or reducing % of contribution?”

  1. 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.



  2. Vikas Choudhary says:

    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

  3. raju says:

    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..

  4. bharat shah says:

    and i think , if it happens, the contribution from employer would increase , and thus retirement kitty. so not bad.

  5. 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”

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