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Sep 08, 2014
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PF ceiling hike set to hit small businesses hard
Already hit hard by slowdown and tight liquidity, small and medium enterprises face a new problem — finding funds for an expanded provident fund coverage.From October 15, companies will have to step up their contributions to the Employees’ Provident Fund Organisation (EPFO). A new directive, which took effect on September 1, raises the basic salary limit for PF enrolment to Rs. 15,000 from Rs. 6,500, bringing many new employees under the EPFO umbrella. Companies have to contribute 12 per cent of every enrolled employee’s basic salary towards PF, of which 8.33 per cent goes into a pension scheme.
Source -
http://www.thehindubusinessline.com
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