EPF mandatory for those earning up to Rs 25000.00 /month:
The Employees Provident Fund Organisation (EPFO) is ready to extend the wage ceiling for workers, creating it obligatory for those earning up to Rs twenty five,000 a month to contribute towards the social insurance theme.
Currently , the ceiling is pegged at Rs fifteen,000 a month and is being accumulated within the wake of the pay commission award for presidency staff, that has resulted in higher salaries for many within the non-public sector too. the problem is to be mentioned at following meeting of EPFO, scheduled for later within the month.
While solely those earning up to Rs 25,000/month need to compulsorily contribute 12-tone system of their basic pay towards EPFO and staff Pension theme (with an identical contribution coming back from the employer), a majority of the corpus comes from people who ar higher than the wage limit. For those higher than the wage cap, it’s not obligatory to contribute to EPFO, however they like to try and do it since the returns are beyond those on supply in different instruments and stay un taxed in the least stages.
Sources aforesaid that the proposal was on the agenda for the last meeting of the central board of trustees however couldn’t be concerned. most trades union representatives further because the government nominees ar aiming to back the move.
The revision in the wage ceiling this time will be amongst the quickest coming three years after it was last raised. The last enhancement -from Rs 6,500 to Rs 15,000 came after a gap of 15 years.