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Govt may lift cap on EPF contributions in key push for central savings programme
Hindustan Times
|November 29, 2024
PROVIDENT FUNDS GIVE RETIREMENT BENEFITS TO NEARLY 67 MILLION SALARIED INDIANS
The Union government is considering doing away with caps on the share of an employee's salary contributed towards pension to enable higher deductions by those who want higher retirement payouts, as part of a series of upcoming reforms, a senior labour ministry official said on Thursday.
An employer and worker both are required by law to contribute 12% of a person's basic salary towards a corpus managed by the Employees' Provident Fund Organisation (EPFO), the state-run retirement fund manager. Provident funds provide retirement benefits for nearly 67-million salaried Indians and often are the key corpus of lifetime savings for the working class.
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