EPFO Update: The salary limit for the Employees’ Provident Fund (EPF) scheme is Rs 15,000 per month, which was last changed in 2014 from Rs 6,500 per month. This scheme is available only for those enterprises which have more than 20 employees.
Epfo will give new facilities to its customers
EPFO Update: The Central Government may soon change the salary limit for the flagship Retirement Saving Scheme of the Employees’ Provident Fund Organization (EPFO). This will increase the mandatory contribution of both the employees and the company employer. Which will help the employees to save more for their retirement. With this increase, EPFO will bring more employees under social security coverage.
At present, the wage limit for the Employees’ Provident Fund (EPF) scheme of EPFO is Rs 15,000 per month, which was last changed in 2014 from Rs 6,500 per month. This scheme is available only for those enterprises which have more than 20 employees.
Index will be done according to inflation
According to ET’s report, an expert committee will soon be constituted to fix a higher wage ceiling, which will be indexed to inflation and reviewed from time to time for coverage under EPFO. According to reports, the EPFO wage ceiling may also be linked with the higher wage ceiling of Rs 21,000 per month under the Employees’ State Insurance Corporation.
There will be equality in two schemes
It will bring parity between the two social security schemes of the government run by the labor ministry and reduce the compliance burden on establishments. The sealing serves two purposes. One of which, organized sector employees earning less than Rs 15,000 per month have to compulsorily become a member of EPF.