Govt on Salary Limit: There is good news for crores of employed people of the country. Modi government is planning to double the monthly salary limit in an effort to increase the social security cover for employees.
Currently, the salary limit required for employees to join the Provident Fund (EPF) scheme is Rs 15000 per month. Which can now be increased to Rs 30000 per month.
As of now, the salary limit under EPFO is Rs 15,000 per month and under ESIC, this limit is Rs 21,000 per month. According to government sources, there is a plan to increase the limits of both these schemes to Rs 30,000 per month. With this step, more than 1 crore employees will come under the ambit of social security.
Final decision in February
Apart from this, there is a plan to make the salary limit under ESIC equal to that of EPF. Increasing the salary limit was discussed in the meeting of the Central Board of Trustees (CBT) of EPFO on Saturday. A source said that the final decision will be taken in the February meeting, but most of the members and the Ministry of Labor are in favor of doubling this salary limit.
Salary limit means that after this contribution to EPF and ESIC becomes mandatory. The employees’ contribution is deducted from the salary and deposited in EPFO and ESIC and the employer also has to make the same contribution.
What will be the benefit to the employees?
Under EPF, both the employee and the employer contribute 12%. After the limit of Rs 30,000 is reached, this contribution will increase to Rs 3600 per month. The advantage of this will be that the lump sum amount and pension of the employees will increase at the time of retirement.
Trade Union Coordination Centre (TUCC) says that in metros like Delhi, monthly salary of housekeeping, driver, security guard etc. is around Rs 20,000, hence it is necessary to increase the salary limit so that they can also get the benefit of social security.
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