The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 will have to be reformed to remove the salary limit of Rs 15,000 and 20 employees. After this change, self-employed people will also be able to join the EPFO scheme.
Employees’ Provident Fund Organization ie EPFO is working on an important proposal. EPFO is considering a proposal to abolish the salary and the limit of employees in the company. This proposal is being considered to be implemented for all types of formal workers and self-employed people. This means that people whose salary is less than Rs 15,000 and a company that does not have 20 employees can be included in the retirement scheme of EPFO.
To implement this new proposal, EPFO is talking to different parties and its point has also been conveyed to the states. At present, only people whose salary is Rs 15,000 can take advantage of the EPFO scheme. Also, only the company which has at least 20 employees can add their employees to the EPFO scheme. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 will have to be reformed to remove the salary limit of Rs 15,000 and 20 employees. After this change, self-employed people will also be able to join the EPFO scheme.
Once this amendment is done in the rules of EPFO, then the rule of salary and mandatory number of employees will be abolished. Then any company with any income or salary and any number will be able to join EPFO. At present, the benefit of retirement scheme of EPFO is available to the same employee or worker whose salary is more than Rs 15,000. EPFO provides provident fund, pension and insurance facility to its members. These facilities are provided under EPF, Employee Pension Scheme and Employee Deposit Linked Insurance Scheme.
On the other hand, a committee has suggested to increase the salary limit of EPF from Rs 15,000 to Rs 21,000. According to the existing rules, only an employee can join EPFO whose salary is up to Rs 15,000.
The rule says that it is necessary to give the benefit of the EPF scheme on behalf of the company to an employee with a monthly salary of Rs 15,000. If the recommendation of the committee is accepted, then the salary limit can be Rs 21,000. Earlier in 2014, the salary limit was increased. EPF was set up in the year 1952 and the 9th increase was done for the last time in 2014.
The money deposited in EPF is for retirement facilities. But in adverse circumstances or subject to certain conditions, money can be withdrawn from PF. During the Corona period, the government had given permission to withdraw advance money from PF. As soon as the limit of Rs 21,000 is fixed, about 75 lakh employees of the country will come under PF.
At present, the benefit of EPF is given to 6.80 crore people. But if the EPFO abolishes the rule of salary limit, then people working in the formal sector and self-employed will also benefit. Under EPF, the benefits of provident fund, pension and insurance schemes are given to the employees.