Central authorities might hike EPFO wage ceiling quickly
The Centre might quickly revise the wage ceiling for the Workers’ Provident Fund Organisation’s (EPFO) flagship retirement saving scheme. As of now, the wage restrict of the Workers’ Provident Fund (EPF) scheme is Rs 15,000 per 30 days or Rs 180,000 a yr.
Workers’ Provident Fund or EPF is social safety scheme managed by the federal government that promotes financial savings for professionals within the service sector. The scheme is legitimate for corporations and firms with 20 or extra employees. Underneath this, the worker has to pay a sure sum of money in the direction of the scheme. The identical quantity is paid by the employer. The curiosity is paid on each worker’s and the employer’s contribution. A hike within the EPFO wage restrict would improve the contribution of each and assist employees for his or her retirement.
The EPFO wage ceiling was final revised in 2014 when the federal government hiked the quantity from Rs 6,500 per 30 days to Rs 15,000 month-to-month.
As per information reviews, the Centre is planning to arrange an professional committee on this regard, which after taking inventory of the inflation state of affairs and different prevailing components, will make the modifications.
As per the newest authorities information, the formalisation of workforce beneath the EPFO jumped by 9.1 per cent in September to 1.68 million in comparison with 1.54 million added in September final yr. The online enrolment throughout the month is 21.85 per cent greater than the month-to-month common recorded over the past fiscal.