A very good news is waiting for EPFO members. If you are also a government employee, then this article is for you. The central government is going to give great news to the employees coming under EPFO very soon. The government may decide to increase the minimum salary of EPFO members. Its demand has been happening for a long time. The wage ceiling was last revised in September 2014.
Preparation to increase salary under EPFO from 15000 to 21000
According to the reports, the Narendra Modi government of the Center is preparing to increase the minimum salary of employees under EPFO from 15000 to 21000. The Modi government recently increased the salary limit from 6500 to 15000. Some employees have objected to the new proposal, and they have demanded that the salary ceiling be increased to $25,000.
The minimum number of employees to join EPFO can be reduced
The Narendra Modi government of the Center can make another big announcement regarding EPFO. A decision may be taken to reduce the minimum number of employees to join EPFO. At present, the number is 20, which can be reduced to 10 to 15 employees. It will be beneficial that even the smallest institutions are able to avail EPFO.
What will benefit you from increasing the EPFO salary limit?
If the minimum salary of employees across the country under EPFO increases to $21,000, then its benefit will be available at the time of retirement. It will have a direct impact on pension and PF amounts. Your contribution will increase.
Good news for government employees
With the minimum wage limit of Rs 21000, more money will be deducted from the salary of the employees for the provident fund, and the contribution to the Employee Pension Scheme (EPS) will also increase. Under the Employee Provident Fund, both employees and employers are required to contribute 12% of their basic salary to the EPF. 12 percent of the employee’s EPF account is deposited in the EPF account; out of 12 percent of the employee’s share, 8.33 percent is deposited in the EPS (Employees Pension Scheme), and 3.67 percent is deposited in the EPF account. With the increase in the minimum wage limit under EPF, the salary of the employee will be deposited more in the EPF account, and the EPS contribution will also increase.
In fact, in the meeting of the Central Board of Trustees of EPFO, there have been many demands to increase the minimum wage limit, whose members are members of employee unions.