PF account holders will have fun! Government may come up with a new plan, you will get more pension after retirement…

New Delhi:- A senior Labor Ministry official said on Thursday that the central government is considering removing the cap on the salary of an employee making pension contribution as part of the upcoming reforms, so that higher deductions are possible for those who want more money after retirement. Could.

Both the employer and the employee are required by law to contribute 12 percent of the employee's basic salary to a fund managed by the Employees' Provident Fund Organization (EPFO). Provident funds provide post-retirement benefits to approximately 67 million salaried Indians and are often the main corpus of life savings for the working class.

Of the total employer's contribution to the Provident Fund, 8.33 per cent goes to the Employees' Pension Scheme of EPFO ​​and 3.67 per cent goes to the Provident Fund every month, which is payable at a maximum salary limit of Rs 15,000.

Employers will have to contribute 8.33 percent

Under the EPF Act, employers will have to make a pension contribution of 8.33 per cent on a maximum of Rs 15,000 for employees joining the scheme after September 1, 2014, even if they are getting high salaries. According to another provision, employees who are part of the pension scheme and were in service before September 1, 2014, can contribute 8.33 percent to the pension scheme.

Why does the government want to remove the borders?

It is noteworthy that the government is considering removing these limits so that more money can be deposited in pension within the existing total contribution. The official said, “If an employee feels that he should invest more of his savings in monthly pension and less in lump sum amount received at the time of retirement, then that would be his choice.

EPFO started pension in 1995

Let us tell you that EPFO ​​started pension in November 1995. It is a social-security scheme that provides pension to organized sector employees. Provident fund savings are mandatory under the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

Meanwhile, officials also said that EPFO ​​has provided employment to 4,300 people till November 7 this year. Apart from 60,000 appointments in central government departments, the process of recruitment of 5,000 others is going on.

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