PF Latest Update – The central government is planning to increase the mandatory PF’s Salary Ceiling. According to sources, the government could increase the required salary ceiling from 15000 to 25000.
New Delhi: The Central Trustees Meeting will be held on March 4 in Srinagar. Some significant decisions are expected in this. The government is reportedly considering raising the mandatory PF pay cap. According to the universal minimum wage, the Modi government is preparing to increase the existing wage limit for PF cuts. According to sources, it is possible to change the existing wage threshold for PF cuts. It is said that the government can increase the EPF Salary Ceiling from Rs 15000 to Rs 25000.
The idea behind this plan is to increase the number of employees to the EPFO as much as possible. According to sources, FY 21’s EPFO return is likely to be reviewed at this meeting. Interest on PF is determined based on the return from the investment. Currently, the basic salary of the ceiling is Rs 15,000, which can be increased to Rs 25,000. It is worth noting that for those with salaries above the basic wage limit, the contribution of the PF (EPF) is optional.
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Why the PF Interest Rate?
This is a statement from EPFO Trustee Member K. E. We have already been notified of this meeting scheduled for March 4 in Raghunathan, Srinagar, and the agenda of the meeting is coming up soon. However, he said that the e-mail on the meeting made no reference to the interest rate debate. Meanwhile, the central futures organization is predicting that the interest rate on employee futures is likely to fall for the financial year 2020-21.
In the year 2019-20, the interest rate on Provident Fund was set at 8.5%. During the Corona hardship period, a large number of employees withdrew their PF Claim , and the contribution was also reduced, leading to lower interest rates.
Millions of people are expected to benefit from the said former Assistant Commissioner A. Provident Fund Organization. K Shukla, if this resolution is implemented, the benefit will be around 6 crore people. Firstly their PF contribution is going to increase. This means that the higher the PF account, the better the return.
