Important news for working employees. If your monthly salary is between ₹15,000 and ₹25,000, the change in the EPFO ​​salary limit may affect you. This change is expected to benefit more employees through provident fund (PF), pension, and insurance coverage. However, the increased PF deductions could reduce your take-home pay.

EPFO salary limit increased from Rs 15,000 to Rs 25,000?

According to sources, a decision has been made to increase the salary limit for EPFO ​​membership from Rs 15,000 to Rs 25,000. It is now being claimed that this change will come into effect on September 17th. This could bring more than 5.1 million employees under the EPFO. But has the government officially announced this information and the implementation date? This will be important to verify.

What benefits do those earning Rs 20,000 get?
Suppose your basic salary is Rs 20,000 per month and you are joining an EPFO ​​company for the first time. Based on the new limit, you can qualify for PF membership as per the rules. Therefore, you are likely to benefit from retirement savings, the Employee Pension Scheme (EPS), and the Employee Deposit-Linked Insurance Scheme (EDLI).

What will be the impact on those earning Rs 10,000?
This change is not expected to have any significant impact on employees earning Rs 10,000 per month. They may already be eligible for PF coverage under the existing rules.

How much salary will you receive after the PF deduction increases?
If PF contributions are calculated based on the statutory wage ceiling/limit, an employee's 12% share amounts to ₹1,800 for an employee's ₹15,000 salary. At a ₹25,000 salary limit, this could be ₹3,000. This means a reduction of up to ₹1,200 per month.

Change in limit after 12 years?
The salary limit of Rs 15,000 was set in September 2014. The new limit aims to provide social security to more employees. However, the actual PF deduction will depend on applicable rules, eligibility, and the salary considered for contribution. Therefore, employees should consult the official information from the EPFO ​​before making a final decision.

PC: India tv