The Employees Provident Fund Organization (EPFO) has announced a significant change that will benefit employees who joined after September 1, 2013.
The deduction under the Group Insurance Scheme (GIS) has been discontinued, leading to an increase in the monthly salary for these employees.
Discontinuation of GIS Deductions
Effective immediately, EPFO has stopped GIS deductions from the salaries of government employees who joined after September 1, 2013. This change was communicated through a circular issued on June 21, 2024.
Who Will Be Affected?
Targeted Group
This decision affects only government employees who have joined service after the specified date.
Employees who fall into this category will see an increase in their net in-hand salary as the deductions for GIS are halted.
Refunds and Salary Increase
Employees who were subject to GIS deductions will receive refunds for any amounts already deducted.
This refund, coupled with the discontinuation of future deductions, will result in a higher monthly salary for the affected employees.
Benefits of the Change
Increased Take-Home Pay
The immediate benefit of this change is an increase in take-home pay for the employees. Previously, a portion of the monthly salary was deducted to fund GIS.
With this deduction stopped, the net salary will increase, providing more financial flexibility for the affected employees.
Expert Opinions
Experts suggest that the discontinuation of GIS will significantly enhance the net salary of government employees who joined after September 1, 2013.
This policy change is expected to positively impact their financial well-being.
