EPFO Update: The EPFO wage limit was last changed in 2014 when the government increased the wage limit from Rs 6,500 to Rs 15,000.
EPFO Wage Limit Hike: To strengthen the social security of employees working in the organized sector, the central government can increase the minimum wage ceiling under the Employee Provident Fund (EPF) from the current Rs 15000 to Rs 21000. Apart from this, the number of 20 employees for any company to join EPFO can be reduced to 10-15 so that more and more companies can be brought under the purview of EPFO.
The minimum wage limit under the Employee Provident Fund was last changed in 2014. Then the minimum wage limit was increased from Rs 6500 to Rs 15000. But no change has been made in this limit in the last 10 years. According to the Economic Times report, the current Labour and Employment Minister Mansukh Mandaviya is reviewing all the pending cases and the government also believes that the minimum wage limit for the Employee Provident Fund along with the limit on the number of employees to be linked with EPF needs to be increased.
By increasing the minimum wage limit to 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 the employee and the employer are required to contribute 12 percent of the basic salary to the EPF. While 12 percent of the employee’s share is deposited in the EPF account, 8.33 percent of the employee’s 12 percent amount is deposited in the EPS (Employees Pension Scheme) and 3.67 percent in the EPF account. With the increase in the minimum wage limit under EPF, not only will more money be deposited in the EPF account from the employee’s salary, but the EPS contribution will also increase.
In fact, in the meeting of the Central Board of Trustees of EPFO, the demand for increasing the minimum wage limit has been made many times, whose members are members of employee unions.
