New Delhi. The Central Government has taken a big decision for the employed people. The Union Cabinet has approved increasing the salary limit for mandatory coverage of EPFO from ₹15,000 to ₹25,000 per month. According to the government, with this change about 51 lakh additional employees can come under the ambit of social security.
You will get benefits of PF, pension and insurance
After the implementation of the new limit, more employees will be able to get the benefits of social security schemes related to EPFO. Under this, eligible employees will get benefits related to provident fund, pension and insurance. The government says that this will increase the social security coverage of employees involved in formal employment.
First big increase since 2014
The last change in EPFO's salary limit was in September 2014, when it was increased to ₹15,000. Subsequently, in view of the changes in salary level and expansion of formal employment, it has now been decided to increase the limit to ₹ 25,000.
₹11,339 crore spent on government
According to Union Minister Ashwini Vaishnav, the decision is expected to benefit around 51 lakh employees and will cost the government around ₹11,339 crore. He said that in many states the minimum wage of unskilled workers has also exceeded ₹ 15,000, hence the need was felt to increase the old limit.
According to the government, the new system will increase the social security coverage of EPFO and more employees can be connected with facilities like PF, pension and insurance for the future.