EPFO Wage Limit Hike: The government may increase the minimum basic salary of employees. Currently, the minimum basic salary of employees is Rs 18000. It can be increased to Rs 26000.
The central government is planning to increase the minimum wage limit under the Employee Provident Fund (EPF) to further strengthen the social security of organized sector employees. The current minimum wage limit of Rs 15,000 can be increased to Rs 21,000. Along with this, the minimum number of employees in a company to join EPFO ​​is also likely to be reduced from 20 to 10-15, so that more companies can be brought under this purview.
The last change was made in 2014
The minimum wage limit for Employee Provident Fund was last revised in 2014, when it was increased from Rs 6,500 to Rs 15,000. There has been no change in this limit in the last 10 years. Labour and Employment Minister Mansukh Mandaviya has stressed the need to increase this limit after reviewing the pending cases.
Employees will have to contribute more
With the increase in the salary limit, employees and employers will have to contribute more to EPF and EPS (Employees Pension Scheme). As per the current rules, 12% of the basic salary goes into the EPF account. Out of this, 8.33% of the employer’s contribution is deposited in EPS and the remaining 3.67% in EPF. With the increase in the limit, these contributions will also increase.
Long standing demand of employee unions
In the meetings of the Central Board of Trustees of EPFO, the employee unions have been constantly demanding to increase the minimum wage limit. This move of the government is expected to improve the social security of the employees and ensure more savings for their future.
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