BUDGET 2018-19 ANNOUNCEMENT REGARDING EPF

[SAFETAB LIFESCIENCE]

Dear Experts,

It was announced that 12% EPF will be paid by Government for new women employer so that employment will be increased.

Does it mean, we (employer) need not to pay employer's contribution 12 %. Then only we can give more employment opportunities to new women employers. Am I right ?

For, existing women employees, we need to deduct only 8% instead of 12% EPF for 3 years from FY 2019-8-19. Am I right ??

AI Summary

Employer Provident Fund contribution: clarification awaited on whether government will assume the employer share for new women hires.
The Budget announcement that the government will pay the employer share of Employees' Provident Fund for new women hires functions as an incentive whose operational effect depends on implementing instructions; employers should await formal guidance before altering employer contributions. A related temporary reduction in employee contribution rates for existing women employees is noted, but employers are advised to await clear administrative directions before changing payroll deductions or employer payments.