DelhiDesk The Ministry of Labor in India has announced that employers will now have to make additional contributions to the social security schemes run by the Employees’ Provident Fund Organization (EPFO) in order to provide higher pensions for their employees. The additional contribution of 1.16% of the basic salary of subscribers opting for higher pensions will be managed by the employers’ contribution. The government currently pays 1.16% of the basic salary up to Rs 15,000 as a subsidy for contribution to the Employees’ Pension Scheme (EPS), while employers contribute 12% of basic salary to social security schemes run by EPFO. Of the 12% contribution by employers, 8.33% goes to EPS and the remaining 3.67% is deposited in the Employees’ Provident Fund. The new policy means that employees will not have to pay extra towards the EPS.
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👉 An additional contribution of 1.16% of basic salary will be required for subscribers opting for higher pension.
👉 Employers will have to make the additional contribution to social security schemes run by EPFO.
👉 The Ministry of Labor has decided to take the additional contribution out of the total 12% contribution of employers in the provident fund.
👉 Government currently pays 1.16% of basic salary up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme.
👉 Employees will not have to pay extra for the additional contribution.
👉 EPFO members opting for higher pension will have to contribute the additional 1.16% towards EPS.
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