Good news for working employees. The Modi government is looking to double the monthly salary cap to boost social security for workers. Right now, the salary limit for joining the Provident Fund (EPF) scheme is set at 15,000 rupees a month, but they’re considering raising it to 30,000 rupees.
They also want to make the salary cap for the Employee State Insurance Corporation (ESIC) match that of the EPF. There were talks about this during the Central Board of Trustees (CBT) meeting for EPFO. A source mentioned that a final decision is expected in February, and it seems like most members and the Ministry of Labor are on board with the idea of doubling the limit.
This salary cap means that once it’s raised, contributions to both EPF and ESIC will be mandatory. Employees will have a portion of their salaries deducted for these contributions, and employers will have to match that amount too.
So, what’s in it for employees?
With the EPF, both employees and employers currently contribute 12%. If the limit goes up to 30,000 rupees, that contribution will jump to 3,600 rupees a month. This means employees can look forward to a bigger lump sum and a better pension when they retire.
