Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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</span></span></code>
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-The Economic Times
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&lt;br /&gt;
&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &amp;quot;matching&amp;quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. &amp;quot;Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down,&amp;quot; the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden.
&lt;/p&gt;
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The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.
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Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn&#039;t shoot up can be on the cards. 
&lt;/p&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 28 May, 2013, http://economictimes.indiatimes.com/personal-finance/savings-centre/savings-news/pf-set-to-cover-all-pay-not-jut-basic-pay/articleshow/20303892.cms&#039;,
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NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;,
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&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
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Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
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NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;
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Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/pf-set-to-cover-all-pay-not-jut-basic-pay-sidhartha-21289.html"/>
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                <strong>PF set to cover all pay, not jut basic pay -Sidhartha</strong></h1>
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                <div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.</p><p align="justify">Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &quot;matching&quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.</p><p align="justify">As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.</p><p align="justify">The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.</p><p align="justify">Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.</p><p align="justify">It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. &quot;Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down,&quot; the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden.</p><p align="justify">The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.</p><p align="justify">Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards. </p>               </font>
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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr68005b9fd1827-trace').style.display = (document.getElementById('cakeErr68005b9fd1827-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr68005b9fd1827-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr68005b9fd1827-code').style.display = (document.getElementById('cakeErr68005b9fd1827-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr68005b9fd1827-context').style.display = (document.getElementById('cakeErr68005b9fd1827-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr68005b9fd1827-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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-The Economic Times
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&lt;br /&gt;
&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &amp;quot;matching&amp;quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.
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As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.
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The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
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&lt;p align=&quot;justify&quot;&gt;
Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
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It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. &amp;quot;Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down,&amp;quot; the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden.
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The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.
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NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;,
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&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
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Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
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-The Economic Times



NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;
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-The Economic Times



NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the..."/>
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                <strong>PF set to cover all pay, not jut basic pay -Sidhartha</strong></h1>
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                <div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.</p><p align="justify">Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &quot;matching&quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.</p><p align="justify">As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.</p><p align="justify">The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.</p><p align="justify">Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.</p><p align="justify">It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. &quot;Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down,&quot; the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden.</p><p align="justify">The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.</p><p align="justify">Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards. </p>               </font>
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-The Economic Times
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&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &amp;quot;matching&amp;quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.
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As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.
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The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
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Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
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-The Economic Times



NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;,
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-The Economic Times
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&lt;br /&gt;
&lt;em&gt;NEW DELHI: &lt;/em&gt;You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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-The Economic Times



NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &amp;quot;compensation&amp;quot; that will include all your allowances, amid intense lobbying against the...&#039;
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                <strong>PF set to cover all pay, not jut basic pay -Sidhartha</strong></h1>
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-The Economic Times
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<em>NEW DELHI: </em>You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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-The Economic Times
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<br />
<em>NEW DELHI: </em>You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.
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The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.
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Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.
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The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.
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Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards. 
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-The Economic Times



NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the...'
$disp = '<div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of &quot;compensation&quot; that will include all your allowances, amid intense lobbying against the move by industry bodies.</p><p align="justify">Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of &quot;matching&quot; provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged.</p><p align="justify">As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it.</p><p align="justify">The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it.</p><p align="justify">Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move.</p><p align="justify">It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. &quot;Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down,&quot; the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden.</p><p align="justify">The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment.</p><p align="justify">Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards. </p>'
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PF set to cover all pay, not jut basic pay -Sidhartha

-The Economic Times NEW DELHI: You may end up saving more in the months ahead with the Employees Provident Fund Organization (EPFO) readying to re-notify a new definition of "compensation" that will include all your allowances, amid intense lobbying against the move by industry bodies. Currently, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of "matching" provident fund and the Employees Pension Scheme contribution. So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike - and companies earn tax credits on salary-related expenses - but the statutory provident fund contribution remains unchanged. As a result, EPFO notified the changes last year but had to withdraw the circular in the wake of protests from employers and the perception that take-home salaries would come down. Even now, industry is resisting the move but EPFO is expected to go ahead with the plan as a panel set up by the labour ministry to vet the proposal has endorsed it. The report is currently pending with the labour ministry but sources said the government will go ahead and notify the norms. To ensure that the proposal goes through without facing legal glitches, the EPFO board may also discuss and ratify it. Industry chambers have, however, not given up the fight against the move. Confederation of India Industry (CII) has already dashed off a four-page letter to labour minister Mallikarjun Kharge arguing that the plan should be deferred, while other industry bodies are expected to step up lobbying against the move. It has suggested that the matter is pending before the Supreme Court after a series of orders by high courts. When contacted, a CII executive said the move will reduce the investment options before an employee. "Someone may want to invest in a mutual fund scheme or buy shares. Besides, employees are happy getting allowances and if the move goes through, take-home salaries may come down," the executive said. Then, he argued for the corporate sector, saying some of the small and medium enterprises will face a higher financial burden. The lobby group is, however, backing another proposal that seeks to restrict reopening of cases beyond seven years, as it is meant to reduce harassment. Government officials, however, countered the industry argument on the new compensation definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards.