How does reduced rate of contributions help employees and employer?

Created by Product Content Team, Modified on Mon, 18 Mar at 7:09 AM by Product Content Team


Due to the decrease in the statutory rate of contributions from 12% to 10%, employees will experience a boost in their take-home pay, as the deduction for EPF contributions from their salaries will be reduced.


The employer will benefit from a 2% reduction in their liability based on their employees' wages.


For example, if the monthly EPF wages are Rs. 10,000, only Rs. 1,000 will be deducted from the employee's wages instead of Rs. 1,200, while the employer will contribute Rs. 1,000 instead of Rs. 1,200 towards EPF contributions.



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