Wage Ceiling Limit Under EPFO: The authorities is considering increasing the wage ceiling limit of individuals coated below the Employees’ Provident Fund Organization (EPFO). This signifies that the minimal wage of PF account holders can now be elevated from Rs 15 thousand to Rs 21 thousand. This is not going to solely increase the contribution of salaried workers to PF however may also increase the pension they may get after retirement as a result of it will increase the contribution of the workers in addition to the employer. The authorities’s goal behind doing this is to increase the social safety protection of the workers.
You will get elevated pension after retirement!
Generally, 12 % of the fundamental wage of the workers is deposited in EPF. The employer additionally contributes the identical proportion of the fundamental wage. Out of this 12 %, 8.33 % is deposited in the EPS account. At current, on the wage ceiling limit of Rs 15,000, 8.33 % of it is in the worker’s pension account i.e. EPS.
If the wage ceiling limit is elevated to Rs 21,000, then now 8.33 % of this quantity will probably be deposited in EPS. This will increase the pension after retirement. Till now, the place 8.33 % of Rs 15,000 was deposited in the EPS of Rs 1,250, now as a result of increase in wage ceiling limit to Rs 21,000, 8.33 % of this quantity i.e. Rs 1,749 will probably be deposited in the pension account.
The modification was made ten years in the past
With this, together with getting a lump sum quantity of EPF after retirement, the EPS i.e. pension quantity may also increase. Before this, the authorities had amended the wage ceiling limit ten years in the past in 2014. At that point it was elevated from Rs 6,500 to Rs 15,000. Now since individuals’s earnings has additionally elevated together with inflation, the authorities ought to once more think about its modification. This has been demanded for a very long time. If this occurs, crores of workers will profit from it.
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