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EPFO Update: Now PF can be deducted on this salary, not Rs 15,000. check details

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EPFO PF Deduction New Rule: If you look closely, a large segment of the population is employed. People work throughout the month and receive a salary, which helps them earn a living and save for their future.

Furthermore, PF is also deducted from employed individuals as per the rules. The Employees’ Provident Fund Organization (EPFO) opens PF accounts for employed individuals. A fixed amount is deducted from the employee’s salary each month, and the company also deposits the same amount into the employee’s PF account. The government also pays annual interest on this amount. But did you know that the current salary limit for PF deductions may be increased? You can learn more about this later. So, let’s find out how much PF is currently deducted from employees and how much this limit could increase to…

At what salary is PF deducted?

  • If your PF is deducted, this money could provide financial assistance in the future. Currently, PF is deducted for those with a basic salary of ₹15,000. However, it is believed that the EPFO ​​may increase this limit, as the EPFO’s Central Board may discuss this proposal in its next meeting.
  • This meeting of the Central Board is expected to take place in December-January. It is believed that the basic salary limit for PF deductions may be increased from ₹12,000 per month. If this decision is made, it will be the first revision of the salary limit since 2014.

What could be the new limit?

While currently, PF deductions apply to those with a basic salary of ₹15,000 per month or less, this limit could be increased to ₹25,000. This will be mandatory for both EPF and EPS.

Why can the limit increase?

Labor unions have been demanding an increase in this limit for a long time. According to them, people working in metropolitan areas earn salaries above 15,000 rupees, making them ineligible for PF benefits under the rules. Therefore, raising this limit could alleviate this problem.

 

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