EPFO Limit Increased: EPFO’s increased limit will benefit 75,00,000 employees, know details here
Contents News/Article Date: 10th February 2023
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952
Applicable to which State: All the establishments in the States with PF coverage
Type: Rightsofemployees news report
Pertains to: Establishments and Members of PF Fund
Relevance of this news: Karma Global has been in the business of HR Services, Payroll, Outsourcing, and Regulatory Compliances right 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, Employee Life Cycle, Statutory, Regulatory, and Payroll compliances by providing customized solutions to all its elite clients.
Now Karma Management Global Consulting Solutions Pvt Ltd is also fully into labour compliance for nearly 18 years and is helping both establishments and workers fulfillment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis. Recently, it has diversified into foreign shores as well, into countries like the US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment, and governance.
And in this instance: Recently Employees Provident Fund Organization is considering increasing the savings scheme of EPFO. It is believed that the government may increase the salary limit for the Retired Savings Scheme. At present this limit is up to ₹ 15000, which is being considered to be increased to ₹ 21000. For companies with a number of employees more than 20, those companies have to open EPF accounts for their employees. That’s why in the interest of the employees, the government is going to take this decision soon that the savings limit should be increased from ₹ 15000 to ₹ 21000.
Subject: EPFO Limit Increased: EPFO’s increased limit will benefit 75,00,000 employees, know details here
Appended is the complete news item
EPFO Limit Increased: EPFO’s increased limit will benefit 75,00,000 employees, know details here
Source: Rightsofemployees news report
EPFO Limit Increased: EPFO stands for Employees Provident Fund Organization. This organization was formed to provide social security cover to the employees. EPFO was formed to give pensions to the retired employees and to keep them self-reliant.
EPFO also gives monthly pensions to the employees or if the employee wants, he can also withdraw the amount deposited in EPFO in a lump sum. Also, if the employee dies untimely, EPFO gives the insurance of up to ₹ 700000 to the dependents of the employee. The government pays interest annually on the amount deposited in EPFO, this interest rate is 8.1% .
How EPFO works?
12% of the employee’s basic salary goes to this EPFO, the employer company also puts the same amount in the employee’s PF account in the name of the employee. If seen, out of 12%, the company puts 8.33% in the employee’s EPS and 3.67% in EPF.
Recently Employees Provident Fund Organization is considering increasing the savings scheme of EPFO. It is believed that the government may increase the salary limit for the Retired Savings Scheme. At present this limit is up to ₹ 15000, which is being considered to be increased to ₹ 21000. For companies in which the number of employees more than 20, those companies have to open EPF accounts for their employees. That’s why in the interest of the employees, the government is going to take this decision soon that the savings limit should be increased from ₹ 15000 to ₹ 21000.
From time to time, the government has increased this savings limit in the interest of the employees, such as when the scheme was launched in 1952, the limit was only ₹500, in 1966, it was changed to ₹1000, in 1976 it was ₹16000.
In 1985 it was ₹ 2500 and in 1990 it was ₹ 3500, which increased to ₹ 5000 in 1994, in 2001 it became ₹ 6500 and from 2014 it has become ₹ 15000 but now it is being considered to increase this limit to ₹ 21000 Is. If this happens then those 75,00,000 employees who are the beneficiaries of this scheme will get its benefit.
At present, no official announcement has been made by the government to increase the limit of this scheme, yet speculations are being made that the limit of this savings scheme will be increased soon.