EPFO Salary Limit: The salary limit for Employees Provident Fund (EPFO) can be increased from 15 thousand to 21 thousand rupees. If this change happens, then the take home salary of the employees may be reduced in the coming time.
EPFO Salary Limit Hike: It is proposed to increase the salary limit for Employees Provident Fund (EPFO) from Rs 15 thousand to Rs 21 thousand. If this happens then it will affect 75 lakh employed people.
According to experts, most of the members of EPFO are in favor that the last revision in the salary limit was done in 2014. After this change, more people can be brought under this circle.
What will be the effect?
Experts say that by increasing the salary limit for EPF, the contribution to EPF may increase, but it will reduce the salary (take home) in hand. But in the end it will benefit the employees only. At present, the employees will get the benefit of the reduced take home salary in future. This will increase their savings and contribute more to the EPS.
government approval required
The approval of the government is necessary on the decision of the EPFO board. This can be taken forward only after getting the green signal from the government. This decision will put a burden on the government. The government spends Rs 6,750 crore every year on the Employees’ Pension Scheme of EPFO. After increasing the salary limit, separate provision will have to be made for it.
The last change happened eight years ago
Let us tell you that the EPF scheme is necessary for the employed people with salary less than 15 thousand rupees. In this, the government gives 1.6 part of your basic salary as contribution. By increasing the salary limit from Rs 15,000 to Rs 21 thousand, 75 lakh employees can get the benefit. Last time the salary limit was increased to Rs 15,000 in 2014.
