EPFO Update: Good news for central employees, salary of these employees will increase..
Big news has come related to central employees. EPFO has announced to stop the deduction under the Group Insurance Scheme with immediate effect. EPFO said in its statement that the deduction under the Group Insurance Scheme (GIA) for government employees is being stopped with immediate effect. However, not all government employees will be affected by this decision of EPFO.
These employees will be affected-
EPFO said in its circular issued on June 21 that only those employees will be affected by this decision, who have joined the service after 1 September 2013.
According to Akhil Chandna, partner of tax and business consultancy company Grant Thornton India, "Employees who have joined EPFO after 01 September 2013 will no longer come under GIS and any deduction already made from their salary will be refunded to them."
Employees' salaries will increase-
Let us tell you that after this decision, the affected government employees will get unexpected benefits and increased salaries. According to experts, the net salary of government employees for whom GIS has been discontinued may increase. Chandana said, "The discontinuation of deductions under group insurance will increase the take-home salary. Earlier, some money was deducted from the monthly salary of the employees as per their pay scale to fund GIS. Now that this scheme is not effective for these employees, the deduction will stop, and they will get more net-in-hand salary." What is GIS? The Government of India implemented the Group Insurance Scheme (GIS) on 1 January 1982 under the name of Group Insurance Scheme 1980 for Central Government employees. GIS is a social welfare scheme under EPFO, which is being run under the Ministry of Labor and Employment to make life easier for members and pensioners under the social security system designed to provide socio-economic security to workers and their dependents in case of accidents.
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