Spellbind HR Outsourcing

*SOMETHING TO OFFER*

*_You can have anything you desire when you have something to offer in return. The path to lasting success is traveled by continuously creating something new and valuable to offer._*

_If your focus is on getting, and taking, and acquiring, you will meet up with much resistance. Such an approach will make it nearly impossible to accomplish the goals you’ve set for yourself._

*_Focus instead on finding ways to give, to create value, and to make that real and meaningful value available to others. When you seek to give of yourself, the possibilities for doing so will have no limit._*

_By giving people what they want, you can readily achieve whatever you want. Work to advance the interests of others, and your own interests are even more profoundly advanced._

*_Look at the world around you and ask yourself what you’re able to offer that can bring value to the moment and to the situation. Answer that question and you’ve figured out how to move quickly ahead._*

🍁🍀🍁🍀🍁🍀🍁🍀🍁🍀🍁🍀

Hello everyone,

I am sharing the below summarise points which I had discussed with PF Commissioner yesterday for better clarity I hope this will help you and solve most of the queries related to reduction in EPF contribution.

1. _*Pay Employee and Employer contribution at 12% each with consent:*_ Government has taken this step considering the Covid19 impact on industries to increase the liquidity to both employees and employer, however, the reduced rate of contribution (10%) is the minimum statutory rate of contribution for May’20, June’20 and July’20 of the package as declared. The employer, employee or both can contribute at higher rate also if they wish to do but as per the notification the 10% contribution rate will be the rate as per statutory compliance for May to uly’20 and if any organisation want to contribute at 12% then should take the employees consent for the safer side so that no one can complaint in future about higher side contribution deduction.

2. _*10% as per the Notification for May’20, June’20 and July’20:*_ If any organisation go ahead with 10% that will increase employees take home salary by 300/ pm(considering base PF wages 15K) and employer will save 300 per employee monthly however it will impact the employees CTC and it will be taxed too if we compensate this to employees for 3 months as this is part of employees CTC as per the contract and also required back and forth working on CTC structuring.

3._*Employee 10% and Employer 12%:*_ If any employees disagree with 1st option then the government have given the option to deduct the 10% for employees and as an employer, if do not want to make changes in CTC then we have the option to contribute at the higher rate (12%).

4._ *CTC Module:*_ Most of the organisation is following it and issuing the appointment letter which includes all the employees cost including employees benefits/employer cost etc however as per the notification the statutory deduction of EPF has been decreased to increase liquidity to both employees and employer thus considering the context if an employer wants to pay the employer part saving which is part of employees CTC that can be paid to employees or if employer wants to save this cost as notified by the government employer can save this and communicate to the employees that as per the government notification the rate of EPF contribution has been reduced to 10% for both employees and employer for May to July’20 thus CTC your will be considered accordingly for May, June and July’20.

5. _*VPF:*_ If any employer wants to pay employer 2% saving to employees as non taxable then this can pay in VPF.

Regards,
*Ankit Tiwari*