Your take home salary likely to increase. Read why?

New Delhi : The Indian government is planning to reduce the social security contribution from 12 per cent to 10 per cent, a move that is likely to increase your take home salary.

Currently, social security contribution is fixed at 24 per cent (12 per cent by the employer and same amount by the employee). While employee's contribution directly goes to provident account, employer's contribution is divided among provident fund account, pension account, and deposit linked insurance scheme.   

If a media report is to be believed then the labour ministry is planning to cut down the contributions by two per cent.

The recommendations are likely to be finalised by the end of current month.

According to the report, the government expects to increase those covered under the social security scheme to 50 crore from the current base of about 10 crore people.

"We are enhancing the scale of coverage by five-fold. Hence, we think that going forward the contribution by and for each worker eligible for a social security cover will come down, benefitting both employee and the employer," the business daily d the official as saying.