BENGALURU: With rise in the number of jobs in the country, labor becomes efficient, leading to the development of the economy. What if all employees in the country are given more PF? Yes, The Government of India has decided to hike the Provident Fund for all employees in the country, by reducing monthly salary, reports ScoopWhoop.

According to the amendments of Employee’s Provident Fund and Miscellaneous Provisions Act 1952, the Government seeks to increase PF by 12 percent from the existing rate 10 percent. At present PF is deducted on basic wages, but with the new proposal, contributions to the related Employees’ State Insurance Corporation will also be considered as a contributing wage.

The Labor Ministry has proposed to include categories like house rent, travelling, gratuity and other allowances as part of the hike.

The Government amended the Act and made it effective from September 1, 2014. As of now, any person with a minimum salary of 6,500 per month is eligible for PF. This initiative taken by the Government is in accordance to Social Security and insurance, found in List III in Seventh Schedule of the Constitution of India.

Although PF includes saving money from salary, it will be beneficial for an employee’s future, but for now, it’s lesser salary.

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