EPFO Update: The government is making big decisions regarding PF employees, which is believed to please many people. Since the Modi government approved the 8th Pay Commission, the PF employee organizations working in private companies have also been demanding an increase in the minimum salary.

It is expected that the government can increase the minimum salary from Rs 15000 to Rs 21000. If this happens, an increase of Rs 6,000 will be seen. This decision can be taken by the government soon. However, no one has officially said anything; such claims are being made in media reports. You can know some important things related to it below.

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Benefit of EPF and EPS possible

The government can increase the minimum salary limit to Rs 21,000. With this, employees will also benefit from EPF and EPS. If the government implements this change, it will affect millions of employees and employers. Employees’ basic salary is Rs 15,000 or less, and they benefit from EPF and EPS (Employees Pension Scheme).

Anyway, 12 percent of the salary of both the employee and the employer is transferred to the EPF account. Of the company’s 12 percent contribution, 8.33 percent is assigned to EPS. But this can be up to a maximum of Rs 1,250. Now the government is considering changing it.

Know what can change?

If the central government increases the salary limit from Rs 15,000 to Rs 21,000, many significant changes can be seen. This will bring more money to EPS, where currently EPS gives Rs 1,250 to the employer, after the increased limit, it will become Rs 1,749. This means that after retirement, you can benefit from a higher pension.

Employees ‘ salaries will be affected.

For information, let us tell you that if PF deduction can increase due to this, then your net in-hand salary is expected to decrease a bit. Its benefit will be available at the time of retirement. Income will be higher for retirement.

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