The employer and employee contribute to the Provident Fund each @ 12% of wages. Out of employer share of Provident Fund, 8.33% contribution is diverted to Employees’ Pension Fund.
The rate of contribution by the Employer to Employees’ Pension Fund has not been raised by the Central Government for the last one decade as the total contribution as percentage of wages is at sufficient level i.e. 25.66%.
However, the Central Government has also appointed an Expert Committee on the Employees’ Pension Scheme, 1995 under the Chairmanship of Additional Secretary (Labour & Employment).The issues relating to revision of rate of contribution, minimum pension, revision of pension benefits, linkage of pension with price index, etc. have been placed before the Committee for examination and consideration.
Shri Harish Rawat, Minister of Labour and Employment gave this information in reply to a question in the Lok Sabha today.
Please give your valuable advice.
An employee appointed for Rs.12000/- consolidated. Is he an excluded employee? If he is not a member of the EPF scheme any Pf is to be deducted?