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Proposed Changes in Employee’s Providend Fund Act.

Proposed Changes in Employee’s Providend Fund Act.

PF to be Increased to Rs 25000 from Rs 15000 – CBT to Ministry of Labour
PF to be Increased to Rs 25000 from Rs 15000 – CBT to Ministry of Labour

CBT members have proposed to the Ministry of Labour to cut contribution and increase the EPF cover wage limit for the country’s 4.5 crores PF members

EPFO Central Board of Trustees (CBT) members have started pressuring them citing the interest of employees. Members have demanded the Labour Ministry to include it on the agenda of the next board meeting.

The Board members have made it clear in the proposal that, like the ESIC scheme of the ministry, the ceiling of the coverage of employees has been increased to 21 thousand salary, similarly, the wage limit of contribution deduction of PF members should be increased from 15 thousand to 25 thousand.

At present, the maximum amount of PF contribution is reduced to Rs 1800 per month on 15 thousand rupees. The employer collects the same amount, but given the time, this amount is less. Therefore the deduction limit should be 25 thousand. 25 thousand to be deducted on salary or basic.

EPFO CBT member Harbhajan Singh said to media that the members have given the proposal to the Union Labour Minister along with the ministry. Increasing the cover limit will strengthen the PF account of the employees and will also deposit a huge amount in EPFO ​​fund.

Harbhajan Singh further said that the minimum pension is still one thousand rupees. Inadequate according to the current time and circumstances. The members have proposed to increase it to 7.5 thousand.

EPFO can use the funds lying in inoperative accounts to increase the pension. Unclaimed money has never been cleared. In the year 2014, the unclaimed amount was 40 thousand crores and in the last financial year, it was stated as 27 thousand crores. These issues will also come up in the board meeting.

Team- Intellex Strategic Consulting Pvt Ltd

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