If the plan of central government works, then take home salary for every month of crores of people will increase. In fact, the government is considering the option of reducing the contribution of provident fund (PF) of employees and increasing the take-home portion and for this, a provision has been done in the Social Security Bill.
At present PF of 12% is deducted from the basic salary of the employees. Similarly, the amount of 12% of basic salary from the employer is also deposited in EPFO, but 8.33% of this amount goes to the EPS i.e. Employees Pension Scheme. Now in the Social Security Bill, 2019, it has been proposed to decrease the share of staff and it has been approved by the cabinet. The bill may be introduced in the session of Parliament this week.