After the necessary pension reform through the Unified Pension Scheme (UPS) in government jobs, now good news can come for the employees of the private sector as well. It has been proposed to increase the wage ceiling for the calculation of provident fund and pension contribution under the Employees’ Provident Fund Organization ( EPFO ). Sources have said that the Finance Ministry may soon take a decision on the proposal received from the Labor Ministry. In this proposal, the Labor Ministry has recommended increasing the salary ceiling from the current Rs 15,000 to Rs 21,000.

Pension and EPF contribution will have a direct impact

According to sources, “The proposal (to increase the salary limit for EPF contribution) was sent in April and the finance ministry will take a final decision on it soon.” The Employees’ Pension Scheme (EPS), managed by the EPFO, has a salary limit of Rs 15,000 for pension calculation from September 1, 2014. However, the proposed hike could provide much-needed relief and better benefits to private sector employees. If the proposal to increase the salary limit from Rs 15,000 to Rs 21,000 is approved, it will have several significant implications on the pension and EPF contributions of private sector employees.

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How is EPS pension calculated

A special formula is used to calculate EPS pension. This formula is – Average salary x pensionable service / 70. Let us tell you that here average salary means the employee’s ‘basic salary’ + ‘dearness allowance’. Apart from this, the maximum pensionable service is 35 years. Currently, the current salary limit (pensionable salary) is Rs 15,000. Now if we calculate with these figures, then the EPS pension is currently Rs 15,000 x 35 / 70 = Rs 7,500 per month.

In-hand salary will decrease

If the salary limit is increased from Rs 15,000 to Rs 21,000, then the pension received by the employees will be Rs 21,000 x 35 / 70 = Rs 10,050 per month. That is, after the new rules, the employees will get an extra pension of Rs 2550 every month. However, one more thing to note here is that after the new rules, the in-hand salary of the employees will decrease slightly because after the implementation of the new rules, there will be more deductions for EPF and EPS from the employee’s salary than now.

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The post EPFO salary limit revised soon, employees can get monthly pension up to Rs 10,050 first appeared on Rightsofemployees.com.

According to a report, now this limit can be increased to Rs 21,000 a month. Last time this limit was increased in 2014. Then the monthly limit for EPFO ​​was Rs 6500, which was increased to Rs 15,000. However, this limit is applicable only to those companies where the total number of employees is more than 20.

The government is hopeful that after increasing the salary limit for joining EPFO, the mandatory contribution from the side of the company and the employees will increase. This will enable employees to save more for their retirement. With this, more and more people will come under the ambit of EPFO.

According to a report in ET, after increasing the salary ceiling of EPFO, about 75 lakh employees will come under this purview. Presently 6.8 crore employees are registered under EPFO.

How does this sealing work?

At present, employees earning Rs 15,000 per month come under the purview of EPFO. The company and the employees together have to contribute 12% of the salary to the EPFO. Secondly, those employees of the organized sector whose salary is less than Rs 15,000 are also required to become members of EPF. In such a situation, if the employee wants, he can increase his contribution, but only a fixed amount is contributed by the company.

The post EPFO Salary Increased Limit: Big News! Can the government increase the salary limit of EPFO? Currently this limit is ₹15,000 per month first appeared on Rightsofemployees.com.

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 media report, 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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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 media report , 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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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.

The post EPFO Salary limit! Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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 media report , 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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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 media report , 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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.

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.

The post EPFO Salary limit! Big News: Salary limit of employees will be increased from Rs 15000 to 21000, claimed in the report first appeared on Rightsofemployees.com.