Some major updates has already arrived regarding the decisions taken by EPFO. Actually those are on a proposal stage, which can be implemented in near future. The proposal is to update the minimum limit for EPS and EPF. It is stated that there will be some discussion about the chances to raise the limit. If they decide to raise the lower limit of these two savings schemes, then will it be helpfull for you or will it be not good for you?
The next meeting of the Employees Provident Fund Organisation may discuss raising the minimum Rs 15,000 limit for joining EPF and EPS. According to reports, the mandatory salary limit for joining these schemes could be raised to Rs 25,000 per month. If this decision is made, more than 10 million employees could benefit. The next meeting of the EPFO’s Central Board of Trustees will be held in December or January, where a decision will be made.
What is the current rule for EPS and EPF
Only employees whose basic salary is currently ₹15,000 are covered by EPS and EPF. Those earning more than that have the option to opt out. This will be the first time since 2014 that a salary ceiling proposal will be discussed.
According to reports published in media websites, an official with the Labor Ministry has stated that the salary threshold for the EPF and EPS schemes could be raised to ₹10,000. This would benefit an additional 10 million employees. Under current rules, employees and employers each contribute 12 percent of an employee’s salary. The employee’s 12 percent contribution goes directly to the EPF account. The employer’s contribution goes to 3.67 percent of the EPF and 8.33 percent of the EPS.
Currently, the EPFO manages a fund of ₹26 lakh crore, with 76 million active members. Experts are welcoming this potential move, believing it will bring financial stability amid changing economic uncertainty.