PF deduction: Panel wants to club basic pay,allowances

Decks have been cleared for clubbing of allowances with basic pay for PF deductions under the EPFO scheme,a move that will increase savings but reduce take-home pay of more than five crore subscribers.

A review committee,constituted to look into the nitty-gritty of clubbing of allowances with basic pay for PF deductions,has supported the idea for enhancing the social security benefit under the EPF scheme run by the Employees’ Provident Fund Organisation (EPFO).

“The committee’s suggestion would be vetted by the Labour Ministry and would be put before the EPFO’s apex decision-making body the Central Board of Trustees for taking final call on it,” said B N Rai,a trustee and secretary of Bharatiya Mazdoor Sangh.

The suggestions of the committee have been already sent to Labour Ministry for scrutiny,EPFO officials said.