The last revision on the limit of eligible salary was done in 2014, in which the government increased the PF salary limit from Rs 6500 to Rs 15000. If it increases this time, then this range will be 21000.
After its implementation, an estimated 75 lakh additional workers will be brought under the purview of the scheme. The approval of the government is necessary on this decision of the EPFO board because the board can proceed on this only after getting the green signal from the government.
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EPFO Salary Limit Update: There is good news for the employees-account holders of Employees Provident Fund Organization. On one hand, the interest money received on PF can be deposited in the accounts by EPFO before Holi, on the other hand, the salary limit can be increased from Rs 15,000 to Rs 21,000 per month. EPFO is considering increasing the limit. 75 lakh employees will get its benefit. However, no official confirmation or statement has been revealed in this regard so far. Explain that a total of 6.5 crore employees are registered under EPFO.
If approved, 75 lakh will be benefited
According to media reports, the Employees’ Provident Fund Organization (EPFO) is considering increasing the salary limit from the existing Rs 15,000 to Rs 21,000 per month for pension benefits. Most of the EPFO members are in favor of this decision as the salary limit was last revised in 2014. A high level committee has agreed to this proposal sent to the Finance Ministry. If this proposal is implemented, it will bring 75 lakh additional workers under the purview of this scheme. The government spends about Rs 6,750 crore every year on the Employees Pension Scheme EPFO. After increasing the salary limit, the government will have to make a separate provision for this.
Last revision was done in 2014
According to media reports, 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. If it increases this time, then this range will be 21000. After its implementation, an estimated 75 lakh additional workers will be brought under the purview of the scheme. The approval of the government is necessary on this decision of the EPFO board because the board can proceed on this only after getting the green signal from the government.
This is how you will get benefit on increasing the limit
- 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, register in EPFO for a company with 20 or more employees. It is mandatory to be
- By increasing the salary limit of Rs 15,000 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.
- The Central Government pays annual interest on the amount deposited in EPFO, this interest rate is 8.1%. 12% of the basic salary of the employee goes to 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.
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