On October 25, 2023, the Khyber Pakhtunkhwa Finance Department announced significant changes to the Contributory Provident Fund (CP Fund) 2002 Scheme.
The changes, which aim to improve employee benefits, include updated contribution levels and increased coverage. These modifications represent a substantial shift in the state’s financial assistance system.
On October 25, 2023, the finance department of the Government of Khyber Pakhtu Khana released a notification about the creation of the Contributory Provident Fund 2022 plan.
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They circulated a notification on the matter, which is V0L-1/1AP&MC/CP fund 2023–2024.
It was constituted by the finance secretary under the authority granted by section 37 of the Khyber Pakhtunkhwa Public Finance Management Act of 2022.
The Contributory Provident Fund 2022 scheme is announced by the Secretary of Finance for the employees included in the 2022 CP Fund Rules.
Thus, they implemented the required changes in the KPK Civil Service Act 1973. Act number X of 2022, the finance department thereafter sends out a notification number SOSR-11/FD/2-4/21 cabinet dated August 19, 2023, in compliance with the contributory provident fund regulations of 2022.
The case of the district or Tehsil government employees receiving pay from account four as is already the case for other funds is also included in the letter. These assets resemble:
- Benevolent fund
- Retirement benefits
- Death compensation
The KPK government may adopt the same procedures for these arrangements. This results in an excessive delay in the transfer of payments.
Additionally, take a source and an equivalent amount from the district or tehsil government’s PFC share. The month after the month the department deducted money from the employee’s paycheck using HR payroll when he needed to meet the add source deduction requirement.