Delhi, November 25: The wage ceiling for the Employees’ Provident Fund Organisation’s (EPFO) retirement saving scheme is likely to be raised by the Centre soon. The union government is likely to revise the current ceiling of Rs 15,000 per month to Rs 21,000 per month which will help employees save more for their retirement.
EPFO Wage Ceiling Hike: How It Will Benefit the Employees?
The increase will bring more workers under the EPFO’s social security coverage. The ceiling was last revised in 2014 from Rs 6,500 per month to Rs 15,000 and the scheme is available to organisations having 20 plus employees. Currently, there are about 68 million workers registered under EPFO and after the hike in the ceiling, 7.5 million more workers are expected to come under the ambit of EPFO, reported Economic Times.
This move is likely to bring parity between the two social security schemes of the government run by the labour ministry and ease the compliance burden on establishments. Online Fraud Alert! Man Loses Rs 1.23 Lakh While Checking PF Balance on Internet; Here’s the Right Way To Check EPFO Account Using UMANG App and Other Ways
As of now, organised sector employees earning less than Rs 15,000 per month have to mandatorily make EPF contributions at the rate of 12 per cent on the prescribed Rs 15,000 maximum wage. How To Change PF Nomination Online Via epfindia.gov.in; Here Is Step-By-Step Guide For EPFO Members
The report further says that an expert committee will be set up shortly to determine a higher wage ceiling, which will be indexed to inflation and reviewed periodically for coverage under EPFO. Experts believe that the move should be analysed as it would impact small-scale industries.
(The above story first appeared on Fresh Headline on Nov 25, 2022 01:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website freshheadline.com).