EPFO Update Today. There is good news for the employees of Employees’ Provident Fund Organization. Soon the mandatory limit of salary under EPFO can be increased from Rs 15,000 to Rs 21,000.
A high level committee has agreed to this proposal sent to the Finance Ministry. If this proposal is implemented, then 75 lakh additional workers will come under the purview of this scheme. Actually, EPFO had sent a proposal to the Finance Ministry about four years ago, in which it was talked about increasing the limit.
Now in this regard, a high-level committee has proposed to the Modi government at the Center to increase the salary limit under the Employees’ Provident Fund Organization to Rs 21,000 per month from the existing Rs 15,000. EPFO members are in favor of increasing the pensionable salary.
The committee says that the central government can implement the increase in salary from the back date after considering all the proposals. The last revision on the limit of pensionable salary was done in 2014, in which the government increased the PF salary limit from Rs 6500 to Rs 15000. After its implementation, an estimated 75 lakh additional workers will be brought under the scheme.
In ESIC also, the salary limit of Rs 21 thousand can be done. Not only this, the salary increase can also be adjusted like the last revision in 2014. Explain that the central government gives Rs 6,750 crore every year in EPF. Under this scheme, the government contributes 1.16 percent of the total salary of EPFO members, to take advantage of this, for a company with 20 or more employees, register in EPFO.
It is mandatory to have With the increase of the salary limit of Rs 15000 to Rs 21,000, not only will lakhs of employees come under the retirement scheme, but the salary limit will be equal to that of Employees’ State Insurance Corporation (ESIC). At the same time, they will get the benefit of various facilities of EPFO.
Taking a look at the current rates of contribution, in case of an existing EPS member (as on 01-09-2014) whose pension contribution was earlier paid in EPS salary limit of Rs.6500, with effect from 01-09-2014 Rs.15000 Contributors above the salary limit, he/she will now have to give fresh consent and deposit the amount of 1.16 per cent in the pension fund (A/C No. 10) through the employer on the salary exceeding Rs.15000/-.
