New Delhi: The Ministry of Labor and Employment is considering a major change in the Employees’ Pension Scheme under the Employees’ Provident Fund Organization (EPFO). Under this, EPFO member employees will be allowed to contribute more for pension.
An official of the ministry said that it is being considered to allow more contribution for pension. The official said that currently the return from EPS is about 8 percent and if the contribution increases, a good pension will be arranged by the time of retirement.
How much is the contribution now?
Currently, with a basic salary limit of Rs 15,000, the contribution to EPFO is 12% each from the employee and the employer. 8.33% of the employer’s contribution goes to the Employees’ Pension Scheme. The entire 12% of the employee goes to the EPF account. There is no plan to increase the contribution limit from the employer’s side, the employee will get an opportunity to contribute more to EPS.
8505 crore in inactive PF accounts
The amount deposited in inactive Employees Provident Fund (EPF) accounts in the financial year 2023-24 has increased five times to Rs 8,505.23 crore as compared to 2018-19. This information was given in the Lok Sabha a few days ago. This amount was Rs 1,638.37 crore in the financial year 2018-19. Union Minister of State Shobha Karandlaje said that there is no unclaimed account in the EPF scheme run by EPFO.
About 19 lakh employees joined in September
In September, a net 18 lakh 81 thousand employees from the organized sector joined EPFO. These figures were recently released by the Ministry of Labor and Employment. According to the figures, this number was 9.33% higher than a year ago. Among the total employees who joined EPFO in September, about 9 lakh 47 thousand were new members. This number is 6.22% higher than a year ago.
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