As reported by ET, one of the two main social security organizations under the Government of India’s Ministry of Labour and Employment, the Employees’ Provident Fund Organisation (EPFO) is expected to increase the wage ceiling to Rs. 21,000 from Rs. 15,000.
After being sidelined for years, the proposal is getting fresh attention. In 2014, the government revised the PF salary limit from Rs 6,500 to Rs 15,000, marking the last salary cap amendment. Now, there’s contemplation within the government to further raise the wage ceiling.
This potential change aims at extending the social security net, seeking to encompass more workers within its protective ambit.
By expanding the wage ceiling, the government endeavors to enhance the accessibility and inclusivity of social security benefits, aligning with broader objectives of welfare enhancement and financial security for the workforce.
According to the reports the official said, “We are evaluating all options and a decision in this regard could be taken by the new government.”
Moreover, The Employees’ Provident Fund Organisation (EPFO) has specified that the EPF account holders will be exempted from submitting a joint declaration form, a vital document requiring both employee and employer signatures.
The EPFO will provide immediate relief to two categories of existing employees:
- Employees who enlisted in the EPF scheme with a monthly basic salary of less than Rs 15,000 and persisted in contributing to the EPF account despite their basic salary surpassing Rs 15,000 per month eventually.
- The second group comprises employees who initially joined with a basic salary below the statutory wage limit and changed jobs over time but neglected to submit the necessary forms.
Recently, Starting April 1, EPFO will implement significant changes in employee provident fund regulations, impacting contributors and beneficiaries.
These changes are expected to benefit employees and employers alike, ensuring smoother operations within the provident fund system.
According to various sources and Mint reports, the new EPF rule will enable automatic transfer of employees’ funds when changing jobs. Their previous Provident Fund balance will be automatically transferred to the new employer account.
Under the new rule, employees/EPFO account holders won’t need to manually request fund transfers when changing jobs, streamlining the process.
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