Your take home salary may take a hit if the Government has its way

Your salary is going to drastically reduce if the amendments proposed by the labour ministry are accepted by the Indian Parliament. 

According to a report in The Indian Express, labour ministry has said that house rent, gratuity, traveling and other allowances to be taken as part of "contributing wages". Provident fund is deducted on these contributing wages. 

In the current structure, PF is deducted on basic wages. 

What this effectively means is that contributing wages, as part of your salary, will increase if the amendments to the PF act are passed and as a result of which, the PF deduction on your salary will rise. 

Moreover, the ministry has also proposed that PF deduction must increase to 12% from the current limit of 10%. 

The paper reported that the amendments are already cleared by the EPFO's Central Board of Trustees and the Union Cabinet is expected to ponder over these in the Monsoon Session of the Parliament next month.