A high-level committee has proposed the increase the wage ceiling under the Employees’ Provident Fund Organization (EPFO).
The proposed increase to Rs 21,000 per month from the existing Rs 15,000. According to a report, the government may increase the limit on the salary of employees.
The report said, The proposed increase of the salary limit to Rs 21,000 per month has been endorsed by a committee. The committee has said that the government may implement the increase at a later date after deliberation.
EPFO members are in favor of the hike as the last amendment was made in 2014. In such a situation, if the increase is accepted by the Central Board of Trustees of EPFO, then lakhs of employees will get a big relief.
According to a media report, once the proposal is implemented, an estimated 7.5 million additional workers will benefit from the scheme. At present, the central government pays about Rs 6,750 crore annually under the Employees’ Pension Scheme.
In case an employee more than the limit of Rs 21,000 will be under the review of retirement scheme and the benefit of another social security scheme will also be given.
Earlier, By an Economic Times report, The Employees’ Provident Fund Organisation (EPFO) backs raising the retirement age to ease pressure on pension funds as it believes that by 2047, India is expected to become an ageing society as around 140 million people are estimated to be above the age of 60 years.
The EPFO in its Vision 2047 document said, “Increasing the retirement age, going forward, could be considered in line with the experience of other countries and will be key to the viability of pension systems.”
There will be 93 million males and 101 million females in 2031 — up from 67 million males and 71 million females in 2021. “That’s why the number of people requiring old age income and health security will go up exponentially,” the EPFO said.