EPFO UPDATE – The central government continues to enact new rules, regulations, and laws for private employees. Their impact is also visible on the ground. The EPFO is now rapidly preparing to make major changes to the rules. The government is set to increase the salary limit for joining the EPS and EPF.
It is expected that the government may increase the salary limit to ₹25,000, which means a ₹10,000 increase in the salary limit. Currently, this salary limit is ₹15,000. If the EPFO approves its proposal, it will benefit over 10 million employees.
Employees will also be able to access pension and provident fund benefits. The salary limit was last increased in 2014, from ₹6,500 to ₹15,000. There is no official word yet on what will happen next.
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When could approval be granted?
No official word has yet been released on when the Central Government will approve this. There is talk that the EPFO is raising the salary limit to ₹25,000. The Central Board of Trustees is expected to approve it early next year.
According to the Labour Ministry, a ₹10,000 salary increase would enable more than 10 million new employees to benefit from pension and provident fund benefits. Employee organisations have been demanding this for a long time. Employees are uncomfortable with the old salary limit for joining PF and EPS.
How many PF members are there nationwide?
This decision by the EPFO will result in increased company costs. This move is also being hailed as a step toward strengthening employee welfare and financial security.
Also, according to a report, there are approximately 76 million PF members nationwide. If the limit is increased for any reason, the scope of pension coverage will expand significantly. This move is expected to prove to be one of the biggest social security reforms in the last ten years.