There is big news regarding Employees Provident Fund Organization (EPFO). The central government is preparing for major changes regarding the salary limit of EPFO. With the help of this change, on the one hand, more and more people will be able to take advantage of EPFO, on the other hand, existing shareholders will also have the facility to raise a bigger retirement fund.
According to the information received, the central government is considering revising the salary limit under the pension scheme of EPFO. These changes will affect the contribution to be made by both the employees and the employers. Means now both you and your company will be able to deposit more money in the name of EPFO. It is believed that the government may once again revise it to Rs 21,000 per month. If the government takes this decision, then the minimum salary limit will increase to get the benefit of EPFO pension.
After this new amendment, the contribution of both the employees and the employer will be increased. Although this may reduce the salary in your hand, but due to this, you will be able to get more amount in retirement from EPFO. On the other hand, after this amendment, more people will get a chance to join under EPFO.
Now there is a limit of Rs 15000
At present, according to the rules of EPFO, the minimum salary limit is Rs 15000 per month. In any company, those employees who get salary more than Rs 15000, there is a provision to deduct EPFO compulsorily. The government is now considering increasing this minimum limit.
Employee employer’s contribution will increase
If the salary cap is revised, there will be an increase in the mandatory contribution of employees and employers. The benefit of which will be given to the employees on their retirement savings. Apart from this, more workers and employees will be able to join this social security cover.
The last increase was in 2014
The government had increased the EPFO limit in the year 2014 and increased it from Rs 6500 to Rs 15000 per month. On the other hand, since the inception of EPFO, amendments have been made 8 times so far.
When and when the limit increased
- Salary limit was Rs 300 in 1952
- In 1957, this limit increased to Rs 500.
- Rs 1962 this limit has become Rs 1000
- In 1976 it was increased to Rs 2500.
- In 1985 it was increased to Rs 3500.
- In 1990 the limit increased to Rs 5000.
- In 1994 it was reduced to Rs 6500.
- Since 2014, this limit has remained at Rs 15,000.
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