New Delhi, Feb 28 : Union Finance Minister Arun Jaitley on Saturday said the government is considering a proposal to make optional contribution to employee provident fund (EPF).
While presenting the union budget for 2015-16 in the Lok Sabha, the minister said changes in the provident fund laws will be made after consultations with stakeholders.
Under the revised system, employees now contributing towards EPF, will be able to contribute towards National Pension Scheme (NPS), he said.
The government also plans to give exemptions to employees from provident fund contribution if their pay is below a particular amount, he said.
Every month, 12 per cent of your basic salary goes into the provident fund account and the employer matches the contribution. Out of the employer’s contribution, 8.33 per cent goes into the Employees Pension Scheme, which offers pension from the age of 58.