Employees are going to get great news under the Employees’ Provident Fund Organization (EPFO). According to a report, the government may increase the limit of salary of employees. Which means, the employees whose salary is less than 15 thousand or 15 thousand rupees, then their salary limit will now be 21 thousand rupees. For example, if the salary of an EPF employee is 15 thousand rupees, then his salary will be 21 thousand rupees per month.
The proposed increase of the salary limit to Rs 21,000 per month has been endorsed by a committee, the report said. The committee has said that the government may implement the increase from a later date after deliberation. In such a situation, if the increase is accepted by the Central Board of Trustees of EPFO, then lakhs of employees will get a big relief.
According to a report in The Economic Times, once the proposal is implemented, an estimated 7.5 million additional workers will benefit from the scheme. At present, the central government pays about Rs 6,750 crore annually under the Employees’ Pension Scheme.
The report also said that any company with more than 20 employees must be registered with the EPFO and the EPF scheme has been made mandatory for all employees earning less than Rs 15,000. Along with this, it has also been told that workers more than the limit of Rs 21,000 will be brought under the purview of retirement scheme and the benefit of other social security scheme will also be given.
Explain that under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, EPFO provides social security benefits to the employees in the form of pension and insurance funds. As per the data, in January 2022, EPFO added 1.52 million employees on a net basis, which is an increase of over 21 per cent as compared to 1.26 million in December 2021.