The Centre might quickly revise the wage ceiling for the Staff’ Provident Fund Organisation’s (EPFO) flagship retirement saving scheme. As of now, the wage restrict of the Staff’ Provident Fund (EPF) scheme is Rs 15,000 monthly or Rs 180,000 a yr.
Staff’ 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 companies and corporations with 20 or extra staff. Beneath this, the worker has to pay a sure sum of money in 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 enhance the contribution of each and assist staff 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 monthly to Rs 15,000 month-to-month.
As per information experiences, the Centre is planning to arrange an professional committee on this regard, which after taking inventory of the inflation scenario and different prevailing elements, will make the adjustments.
As per the most recent authorities knowledge, the formalisation of workforce below 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 last fiscal.