Supreme Court judgement on EPFO contribution
The Supreme Court via its judgement in early March has brought about certain sweeping changes in the savings that end up forming the Employees' Provident Fund Organisation (EPFO) corpus.
The court ruled that not just basic salary, but special allowances paid out by an employer should also be considered while calculating the contribution to the employee provident fund. This means lesser take-home salary in the immediate term, but a larger retirement corpus when you leave the workforce.
While the order came on March 1, several questions with regard to its implementation still need to be answered. And we hope to do just that on this week's episode. My guests on the show are Preeti Chandrashekhar, India business leader, Mercer and Puneet Gupta, tax director, EY India.