EPFO pension rules: Government can make big changes in EPFO pension rules, know how much you will benefit
EPFO pension rules: A big news has come about the Employees Provident Fund Organization (EPFO). The central government is preparing for major changes in the EPFO salary cap. With the help of this change, where on one hand more people will be able to benefit from EPFO, on the other hand the existing shareholders will also get the facility to accumulate a bigger retirement fund. According to the information received, the central government is considering revising the salary limit under the pension scheme of EPFO. These changes will affect the contributions to be made by both employees and employers. That is, now both you and your company can deposit more money in the name of EPFO.
It is believed that the government may once again increase it to Rs 21,000 per month. If the government takes this decision, then the minimum salary limit for taking EPFO pension will increase. After this new reform, the contribution of both employees and employers will increase. While this may reduce your in hand salary, it will allow you to get more money in retirement from EPFO. On the other hand, after this reform, more people will get a chance to join EPFO.
EPFO pension rules: Now there is a limit of Rs 15000
At present the minimum wage limit as per EPFO rules is Rs.15000 per month. In any company, whose employees are getting salary more than Rs 15000, there is provision for EPFO deduction compulsorily. The government is now considering increasing this minimum limit.
Employee employer contribution will increase
If the salary cap is revised, the mandatory contribution of employees and employers will increase. The benefit of which will be given to the employees on their post-retirement savings. Also, more and more workers and employees will be able to join this social security cover.
The last hike was in 2014
In 2014, the government increased the EPFO limit from Rs 6,500 per month to Rs 15,000. On the other hand, EPFO has been amended 8 times since its inception.
as the limit increased
In 1952 the wage limit was Rs 300
In 1957 this limit was increased to Rs.500.
Rs 1962 this limit has been increased to Rs 1000
In 1976 it was increased to Rs 2500.
In 1985 it was increased to Rs 3500.
In 1990 this limit was raised to Rs 5000.
In 1994 it was reduced to Rs.6500.
Since 2014, this limit has remained at Rs 15,000.