At present, the wage ceiling limit is Rs 15000, it can be increased to Rs 25000 in the coming time. If there is a change in it, then it will happen after 10 years.
PF Update: If you are also a job holder then this news is useful for you. Yes, after this year’s Union Budget, the Provident Fund (PF) deducted from your salary may increase. The news published in CNBC claims that the maximum salary limit for Provident Fund (PF) can be increased. An announcement regarding this can be made in this year’s Union Budget. Finance Minister Nirmala Sitharaman can make an announcement about increasing the Wage Ceiling in the budget.
Wage ceiling will change after 10 years
Let us tell you that currently the wage ceiling for Provident Fund is Rs 15,000. Earlier, it was changed on 1 September 2014, at that time it was increased from Rs 6500 to Rs 15,000. Recently, a proposal was made to increase it from Rs 15000 to Rs 25000. If this proposal is accepted, then this will be the first time after 10 years when the wage ceiling will be changed. The Labor Ministry has also prepared a proposal regarding this.
Employees’ contribution to Provident Fund will increase!
With the increase in wage ceiling under PF Fund, employees’ contribution to Provident Fund will increase and their savings in PF will increase. The government is considering this proposal to increase the scope of social security. The increase in the minimum salary limit will affect employees of both the government and private sectors. The Employees State Insurance Corporation (ESIC) also has a salary limit of Rs 21,000 from 2017. The Labor Ministry believes that the salary limit under EPF and ESIC should be the same.
Under the Employees Provident Fund Act 1952 (EPFO), a part of the salary is deposited by the employee and a part by the company. In this, 12%-12% amount is deposited by the employee and the employer. The entire amount deducted from the employee’s salary is deposited in his PF account. 8.33% of the company’s contribution goes to EPS, the remaining 3.67% is deposited in the PF account.
When and how much did the wage ceiling increase
- From 1 November 1952 to 31 May 1957—300 rupees
- From 1 June 1957 to 30 December 1962—500 rupees
- From 31 December 1962 to 10 December 1976—1000 rupees
- From 11 December 1976 to 31 August 1985—1600 rupees
- From 1 September 1985 to 31 October 1990—2500 rupees
- From 1 November 1990 to 30 September 1994—-3500 rupees
- From 1 October 1994 to 31 May 2011—-5000 rupees
- From 1 June 2001 to 31 August 2014—-6500 rupees
- 1 From September 2014 till now—-Rs 15000
