Have there been times when your employer has given you details of the Provident Fund (PF) being deducted from your CTC, only to find out some of the amount was never remitted to your PF account? Such issues will soon be a thing of the past as through the EPFO, the government is planning to provide regular updates on PF contributions.
EPFO Monthly Updates
Currently, the EPFO transfers monthly statements to employees that indicate their PF balance. With such information, employees can contact their HR or the finance department, if they notice any anomalies. But this system is maintained and developed to be even more robust and reliable soon.
Digital System Development
In a meeting held with EPFO officials, the Union Minister of Labour and Employment Mansukh Mandaviya instructed the organisation to create communication channels that will remind employees about rates of PF deductions. The Labor and Employment Minister explained it will facilitate transparency of PF deductions and also improve the trust among employers and employees. The Ministry of Labor and Employment was also keen to state that they are to embark on a clear and effective system on PF deductions for all members shortly.
Importance of Regular Updates
Minister Mandaviya appealed to EPFO officials to establish an efficient and timely communication system that routinely updates the employees on the PF cut they have from their wages. This system is important in the area of salary deductions, especially in the Public sector where the employees will always know their status of PF contributions.
Understanding PF in Your CTC
You are required to contribute 12 per cent of your gross salary, which is derived from your basic pay and house rent allowance and is directly credited into your EPF account. The balance of the salary is what you get hand to hand. Your employer also provides an additional of 12% of your CTC, of which, a portion is contributed to your pension fund.
Conclusion:
The development of a regular update system by EPFO will ensure transparency in PF deductions, helping employees stay informed and build trust with their employers.
EPFO is launching a system to regularly update employees on their PF contributions, ensuring transparency and building trust with employers. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
