Branch2 Intelligence
EPF vs Labour Codes: Is Mandatory PF Contribution Capped At Rs 1,800 Even If Salaries Are Higher?
Key takeaway
India's new Labour Code caps mandatory EPF contributions on basic wages up to Rs 15,000, making additional contributions optional.
- Step 11st-order: India's Labour Code caps mandatory EPF contributions on basic wages above Rs 15,000, making additional contributions optional.
- Step 22nd-order: Higher-salaried employees and employers reduce EPF contributions, increasing take-home pay and reducing employer costs.
- Step 33rd-order: Reduced EPF inflows may slow EPFO's asset growth, potentially affecting its investment returns and liquidity.
Source: IN:NDTV Profit
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