Great news for the employees. Actually, a new update is coming out from the government for the employees. Under which it is being said that the employees will now get double money on retirement. Along with this, the rules of pension have also been changed.
The government may soon increase the salary limit of the pension scheme of the Employees’ Provident Fund Organization (EPFO). This will increase the mandatory contribution of employees and companies. Also, it will help the employees to save more for their retirement funds.
Currently, the salary limit for the Employees’ Provident Fund (EPF) scheme of EPFO is Rs 15,000 per month. This can be increased to Rs 21,000. If this happens, 75 lakh more employees will come under the ambit of EPFO. Now their number is 6.8 crore. The salary cap was last raised in 2014 from Rs 6,500 per month. PF has to be deducted in those companies where 20 or more employees work.
Committee will be formed soon
An expert committee will be constituted soon to increase the salary limit. The committee will decide the limit according to inflation. After this the minimum wage limit will be increased.
Now Rs 15,000 on monthly salary at 12% is Rs 1,800. If the salary limit is raised to Rs 21,000, the PF contribution at 12% will increase to Rs 2,520. This will increase the retirement fund.
