New Delhi, Read: The Union Cabinet on Wednesday approved increasing the salary limit for compulsory social security under the Employees' Provident Fund Organization (EPFO) to Rs 25,000 per month from the existing Rs 15,000. This decision is expected to bring more than 51 lakh additional employees under the mandatory social security cover of EPFO. This change in the salary limit has been made after 12 years. This will provide benefits of provident fund, pension and related insurance protection to a large section of employees.
Information and Broadcasting Minister Ashwini Vaishnav said in a press conference that with this decision, more than 51 lakh additional employees are expected to come under the mandatory ambit of EPFO. This will broaden the scope of social security for employees. The salary limit of EPFO remained unchanged from 2004 to 2014.
Big change now after 2014
After this, it was increased to Rs 15,000 in September 2014. According to the statement issued by the government, in view of the continuous increase in salaries, increasing income and increase in employment in the organized sector, it was decided to increase the salary limit to Rs 25,000. This decision is expected to incur an annual expenditure of around Rs 11,339 crore. Whereas the current annual budgetary support is around Rs 10,250 crore. The estimated expenditure in five years is estimated to be around Rs 56,696 crore.
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