EPFO Limit Increased Check: Employees’ Provident Fund Organization means Employees’ Provident Fund Organization. This organization was formed to provide social security cover to the employees. EPFO was formed to give pension to retired employees and keep them self-reliant.
New EPFO Limit Increased Check
Employees’ Provident Fund Organization also gives monthly pension to the employees or if the employee wants, he can withdraw the amount deposited in EPFO in lump sum. Also, if the employee dies untimely, EPFO gives insurance of up to ₹ 700000 to the dependents of the employee. The government pays annual interest on the amount deposited in EPFO, this interest rate is 8.1%.
How Employees’ Provident Fund Organization works
12 percent of the employee’s basic salary goes to this Employees’ Provident Fund Organization, the employer company also puts the same amount in the employee’s PF account in the name of the employee. If seen, out of 12%, the company puts 8.33% in the employee’s EPS and 3.67% in EPF. Recently, the Employees Provident Fund Organization is considering increasing the savings scheme of EPFO.
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EPFO Latest Update 2023
It is believed that the government may increase the salary limit for the Retired Savings Scheme. At present this limit is up to ₹ 15000 in Employees’ Provident Fund Organization, which is being considered to be increased to ₹ 21000. Companies in which the number of employees is more than 20, those companies have to open EPFO account for their employees. Therefore, in the interest of the employees, the government is soon going to take a decision that the savings limit should be increased from ₹ 15000 to ₹ 21000.
Employees’ Provident Fund Organization limit increased
From time to time, the government has increased this limit of savings in the interest of Employees’ Provident Fund Organization employees, such as when the scheme was launched in 1952, the EPFO limit was only ₹500, In 1966 it was changed to ₹1000, in 1976 it was Rs. ₹16000. In 1985 it was ₹ 2500 and in 1990 it was ₹ 3500 which increased to ₹ 5000 in 1994, in 2001 it became ₹ 6500!
EPFO Limit Increased Check
And from 2014 it became ₹ 15000 but now it is being considered to increase this limit to ₹ 21000. , If this happens then those 75,00,000 employees who are the beneficiaries of this EPFO scheme will get its benefit. At present, no official announcement has been made by the government to increase the limit of this Employees’ Provident Fund Organization scheme, yet it is being speculated that soon the limit of this savings scheme will be increased.
Salary limit will be increased from Rs 15 thousand to Rs 21,000
A high-level committee has proposed increasing the wage ceiling under the Employees’ Provident Fund Organization to Rs 21,000 per month from the existing Rs 15,000. However, the EPFO committee has said that the government can implement the hike with retrospective effect after considering all the proposals.
EPFO Limit Increased Check
The proposal, once implemented, will bring an estimated 7.5 lakh additional workers under the ambit of the EPFO scheme and will also adjust for the increase in wages last revised in 2014. A senior government official said, “If this suggestion is accepted by the Center and the Board of Trustees of the Employees’ Provident Fund Organisation, it will give relief to employers who are willing or unwilling to bear any additional financial burden.” “
Employees’ Provident Fund Organization Update
Employers in their consultation cited burden on their balance sheets due to the outbreak of the pandemic and sought more time to implement the proposed hike. This will also provide relief to the exchequer as the Center currently pays around Rs 6,750 crore every year to the Employees’ Pension Scheme of EPFO. The government contributes 1.16 percent of the total basic salary of Employees’ Provident Fund Organization customers for this scheme.