EPF Salary Limit: There is positive news for millions of working individuals in the nation. The Modi administration intends to double the monthly salary cap to enhance social security coverage for workers. Currently, the salary threshold for employees to enroll in the Provident Fund (EPF) scheme is Rs 15000 monthly. This can now be raised to Rs 30000 each month. Currently, the salary cap for EPFO is Rs 15000 each month, while for ESIC, this cap stands at Rs 21000 per month. As per government officials, there is a proposal to raise the thresholds of these two programs to Rs 30,000 monthly. This action will extend social security coverage to over 10 million workers.
In addition to this, the salary cap for ESIC is also intended to align with that of EPF. The meeting of the Central Board of Trustees (CBT) of the EPFO on Saturday covered the decision to raise the salary threshold. According to a source, the ultimate decision will be made at the February meeting, yet the majority of members and the labor ministry support increasing this salary cap twofold. The salary cap indicates that beyond this point, contributions to EPF and ESIC are compulsory.
The employees’ share is subtracted from their pay and sent to the EPFO and ESIC, with the employer required to match this contribution. Both the employer and employee contribute 12% to the EPF. Following the threshold of Rs 30,000, this contribution will rise to Rs 3600 each month. The benefit of this will be a rise in the lump sum value and pension upon the employees’ retirement.
The Trade Union Coordination Centre (TUCC) states that…
The Trade Union Coordination Centre (TUCC) states that the monthly earnings of housekeepers, drivers, security personnel, etc., in cities like Delhi are around Rs 20,000, hence it is essential to raise the salary threshold to enable them to access social security benefits.