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Latest insights on Human Resource and Workforce related topics in India and articles from HR thought leaders at Aon Hewitt.

Important changes impacting Provident Fund in India

2 May 2019 by  Vishal Grover

The Provident Fund (PF) is a statutory Defined Contribution plan where both the employer and employee contribute 12% of the employee’s applicable wage to the Provident Fund and its sub-plans. The plans are managed and administered by the central PF governing body – the Employees Provident Fund Organization which declares an annual interest rate for the Provident Fund for all employees.

However, Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act (EPFMP) Act, 1952 empowers the Government to exempt any establishment (employer) from the provisions of the Employees Provident Fund Scheme 1952 provided the rules of the provident fund set up by the establishment (employer) are not less favorable for employees than those specified in section 6 of the EPFMP Act.

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Vishal Grover