EPFO : There is big news for employees. The monthly salary of the employees may increase. This benefit will be available only to those employees who have joined after 1 September 2013.
The Employees Provident Fund Organization (EPFO) has decided to stop the deduction under the Group Insurance Scheme (GIS) for government employees joining the job after 1 September 2013 with immediate effect. EPFO said in a circular on 21 June 2024 that it has been directed to immediately stop the deduction under GIS from the salary of all employees joining EPFO after 1 September 2013.
Only such employees will be affected
Not all government employees will be affected by this decision. The impact of this circular is limited to those government employees who have joined service after September 1, 2013. If experts are to be believed, employees who joined EPFO after September 1, 2013 will no longer be covered under GIS and any deductions already made from their salary will be refunded to them. The affected government employees will benefit as their salary will increase. Experts say that the net in-hand salary of government employees for whom GIS has been discontinued may increase.
The salary you get will increase
Stopping deductions under GIS will actually increase take-home pay. Earlier, deductions were made from the monthly salary of the employees as per their salary to fund GIS. This scheme is currently applicable only to employees who joined after 1 September 2013. This will increase the net-in-hand salary of such employees.
