AVOID REDUCING CONTRIBUTION TO EPF

Employees provident fund, which is currently 12 percentage of the salary. Employees who are working under the organised company are going to get an opportunity to reduce their contribution to the employees provident fund. It is introduced in 2019 as a security code bill.  The government has put forward such an idea so that the employees can have more and more money in their hands for their use and consumption. So for the newly joined employees who earn low income have goat a good opportunity. Many studies where conducted ,out of that the study conducted by Willis Towers Watson shows that employees should always save 20 percentage of the salary for retairement corpus. We can also say that employees provident fund is the only retairement vehicle. While taking the private sectors the employees provient fund which is only 12 percentage of the salary . they are not asking the entire salary of the employee. So the employee provident fund is not too high. This is not for the first time we are hearing that government have reducedemployees provident fund contribution. Last time the talk was held on august. The chief executive officer Ankur Maheshwar says that according to volountry provident fund , the contribution of employees should be increased beyond the 12 percentage. In case of employee provident fund for debt instrument 8.65 % seems more attractive. Tax is seemed to be free from any obligations at all stages. By employee provident fund popular pressure ensures that the are same but the returns can change. It suffer from a structural issue. Employees provident fund organisation now invests 15 % in enquities.