EPFO: A high level committee has proposed to increase the salary limit under Employees’ Provident Fund Organization (EPFO) to Rs 21,000 per month from the existing Rs 15,000.However, the committee has said that the government can implement the increase from a later date after considering all the information.
These employees will benefit under EPFO
The proposal, once implemented, will bring an estimated 7.5 million additional workers under the purview of the scheme and will also adjust for wage increases as last amended in 2014.
EPFO pays Rs 6,750 crore every year
This will also be a relief for the exchequer as the Center currently pays around Rs 6,750 crore every year towards the Employees’ Pension Scheme of the EPFO . The government contributes 1.16 per cent of the total basic salary of EPFO subscribers for this scheme.
Salary of EPFO employees is being increased to 21,000
Under the existing rules, any company with more than 20 employees must be registered with the EPFO and the EPF scheme is mandatory for all employees earning less than Rs 15,000. By raising the limit to ₹21,000, more employees will be covered under the retirement scheme. This will also align the limit with other social security scheme Employees State Insurance Corporation (ESIC) where the limit is ₹ 21,000.
EPFO should not be deprived of social security benefits
KE Raghunathan, who is on the EPFO’s Central Board of Justice, said there is a consensus within the EPFO that the same norms should be followed for providing social security under both EPFO and ESIC. The difference in norms under both the schemes should not deprive workers of their social security benefits.
