EPFO Wage Limit Hike: If you also work in an organized sector, then this news will bring happiness on your face. Because this month the central government is going to increase the minimum wage limit under the Employee Provident Fund (EPF). After which crores of PF account holders of the country will get a big benefit. Let us tell you that till now pension is deducted in EPFO according to 15000 basic salary. But now it is believed to be increased to Rs 21000. After which the employees will get a big benefit. Apart from this, the number of 20 employees to join EPFO can be reduced to 10-15...
The last time the minimum wage limit under the Employee Provident Fund was changed was in 2014. At that time the basic salary was only Rs 6500. After which it was made Rs 15000. Even after ten years, no change has been made. According to media reports, Labor and Employment Minister Mansukh Mandaviya is reviewing all pending cases and the government also believes that the limit of the number of employees to join EPF will be increased along with the minimum wage limit for the Employee Provident Fund.
Let us tell you that under the Employee Provident Fund, both the employee and the employer have to contribute 12 percent of their basic salary to EPF. 12 percent of the employee's salary is deposited in the EPF account. While 8.33 percent of the share that comes from the employer goes to the EPS account. Also, 3.67 percent is deposited in the EPF account. If the minimum wage limit is increased, then the amount deposited in EPS will be doubled accordingly.
According to the information, if the salary limit is increased from Rs 15 thousand to Rs 21 thousand, then this decision will increase the pension and EPF contribution of employees working in the private sector. If the government passes the proposal, the pension amount will increase. Due to which employees will get more money after retirement. Apart from this, more and more employees will come under its purview due to increase in salary limit.
