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Women's EPF Contribution Cut in 2018 Led to 11.6% Lower Healthcare Expenditure, Study Shows

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
07 Jul 2026
~2 min
Source: The Hindu
Key Data:11.6% reduction in healthcare expenditure12% to 8% PF contribution cut2018 EPF reformOxford Open Economics journal
Bodies:EPFOAyushman Bharat
Practice MCQs from today's news ▸
What This Article Covers

1.2018 EPF reform reduced PF contribution for new women employees from 12% to 8% for first 3 years, increasing take-home pay.

2.Female-led households reduced overall healthcare expenditure by 11.6%, spending more on nutrition and physical fitness.

3.Research implies women's economic empowerment can be a health policy tool, linking employment policy to preventive healthcare.

The Big Picture
Prelims · HighMains · High

New research shows that the 2018 EPF reform, which reduced mandatory PF contributions for newly employed women from 12% to 8%, led to a 11.6% reduction in healthcare spending by female-led households. Women redirected the extra income towards nutrition and fitness, suggesting that increasing women's earnings can shift household priorities towards preventive health, reducing future healthcare burden.

Exam Lens

Quick Exam Facts From News

EPF Reform Year2018
PF Contribution Cut12% to 8% for first 3 years for newly employed women
Healthcare Spend Reduction11.6%
Shift in SpendingFrom curative (medicines/doctors) to preventive (nutrition/fitness)

1-Minute Revision

  • ›EPF Reform Year: 2018
  • ›PF Contribution Cut: 12% to 8% for first 3 years for newly employed women
  • ›Target this Data: 11.6% reduction in healthcare expenditure by female-led households after EPF reform.
  • ›Target this Reform: 2018 EPF reform – reduced PF contribution from 12% to 8% for newly employed women in first 3 years.
  • ›Target this Journal: Oxford Open Economics (forthcoming research).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which government scheme is mentioned in the article as expanding financial protection for millions of households?

Q2Statement-basedHard

Consider the following statements regarding the research discussed in the article:

1. The study used nationally representative household panel data and electronic medical records.

2. The EPF reform reduced PF contributions for all women employees from 12% to 8%.

3. The research is forthcoming in the journal Oxford Open Economics.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the research, by what percentage did female-led households reduce overall healthcare expenditure after the EPF reform?

Q4Application/ImpactMedium

What is the primary implication of the research findings for India's development strategy?

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