Budget 2016: Govt to pay EPF for all new employees for 1st three years

New Delhi, Feb 29: Finance Minister Arun Jaitley, in his 3rd Union Budget, today announced that the government will pay EPF contribution of 8.33% for all new employees for 1st three years.

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"Our Government will pay EPF contribution of 8.33% for all new employees for 1st three years. Rs 1,000 crore allocated for new EPF scheme," said FM Jaitley.

Earlier, Jaitley listed 'nine pillars' including tax reforms, promoting ease of doing business and ensuring fiscal discipline, that will transform India.

Unveiling the Budget 2016-17, he said the pillars also include emphasis on governance reforms. The other pillars, he added, include focus on agriculture and rural areas with a view to doubling farm income by 2022.

Besides, he said, government will lay greater emphasis on social sectors, education and skill building and job creation for building a knowledge based and productive economy.

The government, Jaitley said, will also focus on infrastructure investment, financial sector reforms, fiscal discipline and tax reforms to reduce compliance burden.

Earlier this month, the retirement fund body EPFO has tightened norms on withdrawal of provident fund as well investment of such amount in Varishtha Pension Bima Yojana for its over five crore subscribers.

"Now, the subscribers will not be able to claim withdrawal of their provident fund after attaining age of 54 years. They would have to wait till attaining the age 57 years. The ministry has notified new rules," a senior official.

OneIndia News

(With inputs from agencies)