EPFO likely to cut PF contributions from 12% to 10%

New Delhi : Employees' Provident Fund Organisation (EPFO) trustees are likely to accept proposal on Saturday of cutting down PF Contributions from 12 per cent to 10%.

News Agency Press Trust of India quoted a source saying that the decision will be taken by EPFO on Saturday.

The proposal to reduce the contributions by employers and employees to 10 per cent of basic wages, including basic pay and dearness allowance, is listed on the agenda for meeting of the Employees' Provident Fund Organisation (EPFO) scheduled on May 27, 2017 in Pune, a source said.

There is also information that trade unions may oppose the decision to cut down PF contribution. 

An EPFO trustee and Bharatiya Mazdoor Sangh leader P J Banasure said, "We will oppose this proposal. This is not in workers interest."

Another trustee and All India Trade Union Congress Secretary D L Sachdev said, "The reduction of contributions will reduce the benefits for workers by four percentage point.