EPF Benefits Budget 2025: Preparations for the Union Budget have started. Pre-budget meetings are going on. Sectors are sending their demands to the Finance Minister. The budget may be presented on 1 February 2025. Nirmala Sitharaman will present the country's budget for the 8th consecutive time as Finance Minister. Who will she please? This will be known only on the day of the budget. But, in the meantime, good news seems to be coming for the employed. If sources are to be believed, the Finance Minister may make an announcement related to the Employee Provident Fund (EPF) in the budget this time. This announcement can be significant for the employed.

EPF wage limit may change

According to sources associated with the Ministry of Labor, the government may increase the salary cap i.e. limit (wage ceiling limit) of the Provident Fund (PF) in this budget. This limit of EPF was last changed in the year 2014. At that time, the limit was increased from Rs 6500 to Rs 15,000. Sources said that its draft has been prepared by the Ministry of Labor and Employment. There is a proposal to increase the PF limit to Rs 21000. The limit of Employees State Insurance Corporation (ESIC) has been Rs 21,000 since 2017. The government wants to make the limit of both social security schemes the same. Both EPFO ​​and ESIC are under the administrative control of the Ministry of Labor and Employment.

More people will come under the purview due to an increase in the limit.

The current wage ceiling limit of EPF is Rs 15 thousand. There was a demand to increase it to Rs 25 thousand. But, increasing the limit to Rs 25,000 is expected to increase the financial burden. Therefore, it can be limited to Rs 21000. It is voluntary to opt for EPF for employees over Rs 15,000. If the limit increases, more people will be able to join it. However, if the current limit increases in the upcoming budget, then the new employees coming under this scheme may see some changes in their salary structure.

What will be the benefit of increasing the EPF limit?

Increasing the salary limit under EPF directly means that more money will come into your EPF account and pension account. In this, not only your contribution will increase, but the employer will also have to increase the contribution. Lakhs of employees will benefit from increasing the salary limit under PF. Because currently in most states the minimum wage is between Rs 18,000 to Rs 25,000. Increasing this limit will have a huge financial impact on both the government and the private sector.

What is the current rule?

If a company has 20 or more employees, then it has to register in the Employees Provident Fund (EPF). Then salaried employees earning Rs 15,000 per month including basic salary and dearness allowance have to contribute 12% to the fund. His company also contributes equally to this fund. The employee's contribution goes entirely to EPF. At the same time, 3.67% of the 12% contribution of the employer i.e. company or organization goes to EPF and 8.33% to EPS i.e. Employees Pension Scheme.

Who manages EPF accounts?

The Provident Fund is managed by the Central Board of Trustees (CBT). It includes representatives of the central and state governments along with employers and employees. This board manages the Provident Fund, Pension Scheme, and Health Insurance Scheme for employees working in the organized sector in the country. The Employees Provident Fund Organization (EPFO) looks after all the operations in collaboration with the board. EPFO ​​has more than 120 offices across the country. EPFO ​​remains under the administrative control of the Ministry of Labor and Employment.

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