EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report
Posted Date: 9th August 2022
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952
Type: Rights of Employees – News item
Pertains to employer and employee.
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd has been in the business of Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global has been handling PF-related compliances of hundreds of clients whereby the PF pension scheme is also taken care of. It churns out thousands of employees’ data on its internal payroll software for its clients and its expert staff also work on the EPFO portal to download relevant data including making payment of contributions as per the regulatory PF Act.
If the wage ceiling of Rs.15,000/- is moved upper to Rs.21,000/- more and more employees will be covered for PF and importantly, most of the migrant and outsourced employees will also get covered under this PF, and already provision is made in the respective labor codes for covering gig workers, platform workers, car drivers, and all others.
Subject: EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report
EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report
Employees are going to get great news under the Employees’ Provident Fund Organization (EPFO). According to a report, the government may increase the limit of the salary of employees. This means the employees whose salary is less than 15 thousand or 15 thousand rupees, then their salary limit will now be 21 thousand rupees. For example, if the salary of an EPF employee is 15 thousand rupees, then his salary will be 21 thousand rupees per month.
The proposed increase of the salary limit to Rs 21,000 per month has been endorsed by a committee, the report said. The committee has said that the government may implement the increase at a later date after deliberation. In such a situation, if the increase is accepted by the Central Board of Trustees of EPFO, then lakhs of employees will get a big relief.
According to a report in The Economic Times, once the proposal is implemented, an estimated 7.5 million additional workers will benefit from the scheme. At present, the central government pays about Rs 6,750 crore annually under the Employees’ Pension Scheme.
The report also said that any company with more than 20 employees must be registered with the EPFO and the EPF scheme has been made mandatory for all employees earning less than Rs 15,000. Along with this, it has also been told that workers more than the limit of Rs 21,000 will be brought under the purview of the retirement scheme and the benefit of another social security scheme will also be given.
Explain that under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, EPFO provides social security benefits to the employees in the form of pension and insurance funds. As per the data, in January 2022, EPFO added 1.52 million employees on a net basis, which is an increase of over 21 percent as compared to 1.26 million in December 2021.