EPF Contribution became optional in 2015 Budget

India had a common problem of employees not being able to get their entire salary, since it was mandatory that a part of it be paid to their own Provident Fund. This was a particular problem for those who earned the bare minimum of wages, since the final amount was obviously, not enough to cover their monthly expenses. These worries have been made a thing of the past however, with the release of the new Indian Budget for the year 2015. Previously, the entire fact worked on the basis of contributing 12 percent of the salary towards the Provident Fund, while the employer made a similar contribution every month as well. Apart from the EPF, employers also had to put 8.33 percent towards the pension of each individual employee.

The new budget has seen a lot of major upheavals towards the good, especially when it comes to the matter of employees and their salaries. This area has seen quite a few problems, with the amount of legal troubles and red tape making it almost impossible for people to get into. With the 2015 budget, many worries have ceased to exist, and it is hoped that both the companies as well as their employees will benefit from it greatly. One such proposal includes the option to not pay tax if the income every month is less than 30,000. This facility will also be made available to senior citizens, which can be a big help in providing towards their care at their age. Having to pay such an amount every month to their Provident Fund and then being unable to properly access it due to legal issues does not make any sort of sense at all. With the new budget, the Indian Government has taken active steps to ease the problems faced by the working class, and attempted to make things easier on the whole for every individual.

There is also a proposal on the table that allows for employees to choose how they wish to receive their own salary. The proposal is still in development, and will take the opinions of the companies as well as their stakeholders into account before making a final decision. It allows for them to make a choice between the Employee’s State Insurance Corporation (ESI) or a Health Insurance product of their own choosing. This can allow workers to choose that which they require and is more important, and helps them make some important decisions in regards to what they contribute their salary towards.

With all these radical changes and proposals in place, the Indian Government has actually made working for companies a lucrative idea for the youth of today, who might previously have been turned away due to the idea of all the problems. However, if the youth and their mind can actively be included in companies today without all the red tape, then India can prove to be an even brighter spark in the world economy and standing.