Friday, 14 December 2012

Provident Fund on full salary:

A circular has since been issued by the Employees Provident Fund Organisation to the effect that deduction of Provident Fund from the salary of the employees be henceforth be done by computing provident fund on full salary inclusive of all the allowances payable to them as against the current practice of calculating it on the basis of basic pay+dearness allowance only. The decision so taken sounds apparently to be laudable but it may not give the employees any benefit of increase in their actual take home salary, this shall rather be reduced as a result of more amount being deducted as provident fund. Saving wise, it is alright, but any cut made in the salary by terming it as a compulsory saving for the employees may hardly mean any thing in days to come on the face of the fact that value of money is getting deteriorated every day as a matter of inflation, rather hyper inflation, which is so rampant.

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