EPFO Limit Increased: EPFO stands for Employees Provident Fund Organization. This organization was formed to provide social security cover to the employees. EPFO was formed to give pension to the retired employees and to keep them self-reliant.
EPFO also gives monthly pension to the employees or if the employee wants, he can also withdraw the amount deposited in EPFO in lump sum. Also, if the employee dies untimely, EPFO gives insurance of up to ₹ 700000 to the dependents of the employee. The government pays interest annually on the amount deposited in EPFO, this interest rate is 8.1% .
How EPFO works ?
12% of the employee’s basic salary goes to this EPFO, the employer company also puts the same amount in the employee’s PF account in the name of the employee. If seen, out of 12%, the company puts 8.33% in the employee’s EPS and 3.67% in EPF.
Recently Employees Provident Fund Organization is considering to increase the savings scheme of EPFO. It is believed that the government may increase the salary limit for the Retired Savings Scheme. At present this limit is up to ₹ 15000, which is being considered to be increased to ₹ 21000. Companies in which the number of employees is more than 20, those companies have to open EPF account for their employees. That’s why in the interest of the employees, the government is going to take this decision soon that the savings limit should be increased from ₹ 15000 to ₹ 21000.
From time to time, the government has increased this savings limit in the interest of the employees, such as when the scheme was launched in 1952, the limit was only ₹500, in 1966, it was changed to ₹1000, in 1976 it was ₹16000.
In 1985 it was ₹ 2500 and in 1990 it was ₹ 3500, which increased to ₹ 5000 in 1994, in 2001 it became ₹ 6500 and from 2014 it has become ₹ 15000 but now it is being considered to increase this limit to ₹ 21000 Is . If this happens then those 75,00,000 employees who are the beneficiaries of this scheme will get its benefit.
At present, no official announcement has been made by the government to increase the limit of this scheme, yet speculations are being made that the limit of this savings scheme will be increased soon.
