The first quarter of the calendar year has seen important developments with respect to the statutory Provident Fund in India. These developments impact both employers and employees.
Developments impacting both employers and employees : Supreme court rules special allowances part of basic wage while determining Provident Fund contributions.·
Developments impacting employees : Supreme Court judgement sets aside amendments made by Employees Provident Fund Organization in 2014 with respect to Employees Pension Scheme (EPS) potentially increasing the scope and size of pensions access for employees.
Please find here a newsletter discussing the developments in detail and our Point of View
The Supreme Court ruling on inclusion of allowances is expected to have a significant financial impact on compensation budgets and strategy going forward. In view of the above, Aon conducted a quick pulse survey to understand how
- Organizations plan to implement and manage the above changes with respect to PF
- How these changes would impact organizations in terms of additional financial costs
The survey results would help participants understand the actions undertaken by organizations on the recent Provident Fund court rulings along with Aon’s Point of View which in turn would help them in establishing their own Provident Fund and related compensation structuring policy.