What if govt raises cap on EPFO wage ceiling

The authorities is prone to revise the wage ceiling for the Employees’ Provident Fund Organisation’s (EPFO) flagship retirement saving scheme. As of now, the wage restrict of the Employees’ Provident Fund (EPF) scheme is ₹15,000 monthly. A committee will probably be set as much as decide a better wage ceiling, The Economic Times reported.

If the wage ceiling is revised, it will improve the obligatory contribution by each workers and employers. An employer makes an identical contribution of 12 p.c of the employees’ primary wage in the direction of provident fund whereas the federal government contributes 1.16 p.c to the Employees’ Pension Scheme for each employee, with the wage ceiling fastened at ₹15,000. Of the employers’ share of 12 p.c, 8.33 p.c goes into the pension account of the beneficiary.

Wage ceiling below the EPFO has been revised solely eight instances for the reason that inception of the scheme in 1952. It stood at ₹300 in 1952, ₹500 in 1957, ₹1,000 in 1962, ₹1,600 in 1976, ₹2,500 in 1985, ₹3,500 in 1990, ₹5,000 in 1994, ₹6,500 in 2001 and ₹15,000 since 2014 onwards.

EPFO is India’s principal organisation liable for providing social safety protection to the organised sector workforce below the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It affords a variety of providers to its members together with a provident fund, pension advantages to the members on their retirement and household pension and insurance coverage advantages to their households in case of the premature dying of the member.

The Employees Provident Fund Organisation (EPFO) provisional payroll knowledge launched on Sunday confirmed that the EPFO has added 16.82 lakh internet subscribers within the month of September 2022, which is a rise of 9.14 per cent in internet membership as in comparison with the corresponding month throughout final yr, 2021.

As in comparison with the month-to-month common that was recorded over the last fiscal, the online enrolment in the course of the month is 21.85 per cent greater.

According to the Ministry of Labour and Employment, round 2861 new institutions have began complying with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 making certain social safety cowl to their workers.

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less