The central government is planning to increase the minimum wage limit under the Employee Provident Fund (EPF) to further strengthen the social security of organized sector employees. The current minimum wage limit of Rs 15,000 can be increased to Rs 21,000. Along with this, the minimum number of employees in a company to join EPFO ​​is also likely to be reduced from 20 to 10-15, so that more companies can be brought under this purview.

The last change was made in 2014

The minimum wage limit for Employee Provident Fund was last revised in 2014, when it was increased from Rs 6,500 to Rs 15,000. There has been no change in this limit in the last 10 years. Labour and Employment Minister Mansukh Mandaviya has stressed the need to increase this limit after reviewing the pending cases.

Employees will have to contribute more

With the increase in the salary limit, employees and employers will have to contribute more to EPF and EPS (Employees Pension Scheme). As per the current rules, 12% of the basic salary goes into the EPF account. Out of this, 8.33% of the employer’s contribution is deposited in EPS and the remaining 3.67% in EPF. With the increase in the limit, these contributions will also increase.

Long standing demand of employee unions

In the meetings of the Central Board of Trustees of EPFO, the employee unions have been constantly demanding to increase the minimum wage limit. This move of the government is expected to improve the social security of the employees and ensure more savings for their future.

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The post EPFO Wage Limit Hike: Govt can increase the minimum basic salary of employees from Rs 18000 to Rs 26000, Details here first appeared on Rightsofemployees.com.

Apart from this, the number of 20 employees for any company to join EPFO ​​can be reduced to 10-15 so that more and more companies can be brought under the purview of EPFO.

The last time the minimum wage limit under the Employee Provident Fund was changed was in 2014. Then the minimum wage limit was increased from Rs 6500 to Rs 15000. But no change has been made in this limit in the last 10 years. According to the Economic Times report, the current Labor and Employment Minister Mansukh Mandaviya is reviewing all pending cases and the government also believes that the limit of the number of employees to join EPF along with the minimum wage limit for the Employee Provident Fund needs to be increased.

By increasing the minimum wage limit to Rs 21000, more money will be deducted from the salary of the employees for the Provident Fund and the contribution to the Employee Pension Scheme (EPS) will also increase. Under the Employee Provident Fund, both the employee and the employer are required to contribute 12 percent of the basic salary to the EPF.

While 12 percent of the employee’s share is deposited in the EPF account, 8.33 percent of the 12 percent of the employee’s share is deposited in the EPS (Employees Pension Scheme) and 3.67 percent in the EPF account. With the increase in the minimum wage limit under EPF, not only will more money be deposited in the EPF account from the employee’s salary, but the EPS contribution will also increase.

In fact, the demand for increasing the minimum wage limit has been made several times in the meeting of the Central Board of Trustees of EPFO, whose members are members of employee unions.

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The post EPFO Wage Limit: Central govt may increase the minimum wage limit under EPF from the current Rs 15000 to Rs 21000 first appeared on Rightsofemployees.com.