Budget 2018: Government decides to contribute 12% of wages to new employees under EPF

Last Updated: Thu, Feb 01, 2018 14:11 hrs
Jaitley

New Delhi: Finance Minister Arun Jaitley in his Budget 2018 speech announced that the government will contribute 12 per cent of the wages to new employees under the Employees Provident Fund Organisation (EPFO) for the first three years.

"Government has decided to contribute 12 per cent of wages to new employees across all sectors in EPF," Jaitley said in his speech.

With the existing contribution of 1.16 per cent towards EPFO subscribers' basic wages, the government bears an annual burden of around Rs 6750 crore.

The current 8.65 interest rate on EPF deposits was lowered during the last fiscal, from the previous 8.8 per cent prevailing in 2015-16.



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