evidence: New Delhi: In order to offer more liquidity to salaried people amid this pandemic, the Employees' Provident Fund Organisation (EPFO) has allowed employees and employers to contribute 10% instead od 12% for three months. EPFO provided clarification on the reduction of EPF contribution towards EPF for the months of May, June and July. [...] It is worth mentioning that whether you choose to opt for the old tax regime or the new tax regime, EPF contribution is not taxable up to the extent of 12 per cent of your basic pay in a single financial year meaning if you choose to contribute 10 per cent towards EPF only, you will receive Rs 600 per month extra for three months as cash in hand or Rs 1,200 (if the employer chooses to contribute 10%). This will increase your annual taxable income by Rs 1,800 or Rs 3,600. [...] So, employers following the CTC framework are also advised to stick with the 12 per cent EPF contribution as their outgo will remain the same. If your employer has decided to opt for the 10 per cent contribution, such a disclosure may have been made by them. You need to check if the employer is planning to make this transfer of additional cash under a different head in your salary slip.