Pakistan PF Rules: Provident fund i.e. PF is the biggest help in old age for working class. The Employees Provident Fund Association in India has recently changed its rules.

New Equation of Deduction of PF in India

As per the new rules of EPFO ​​in India, the salary limit for deducting 12 percent PF has been fixed at Rs 15000 per month. That is, if the basic salary of an employee is Rs 1 lakh, only Rs 1800 will be deducted from his salary compulsorily. Employees can deposit more funds as per their wish. VPF’s option is open for this. According to the Government of India, this rule applies to approximately eight crore active working class people.

Pension and EOBI rule in Pakistan

The social security and provident fund system in Pakistan is different as compared to India. A special organization works for such pension and old age benefits. It is called EOBI. In Pakistan, this fund is not deducted from the employee’s actual salary, but is based on the minimum salary fixed by the government. Currently the minimum salary is fixed at Rs 40,000 per month. On account of which the whole calculation is done.

What is the share of employee and owner

The minimum wage fixed by Pakistan under the EOBI rules is only 1 percent of the employee’s salary, which is roughly Rs 400. When the employee’s company or employer contributes a minimum of 5 percent i.e. around Rs 2000 from his/her side. In this way, both the employee and the company share a total of Rs 2400 per month deposited in that fund. This arrangement is mandatory for all its registered companies.