Finance Ministry will decide EPF wage ceiling for EPF cover

Finance Ministry is still deciding EPF wage ceiling for EPF cover. Earlier Labour Ministry proposed to raise wage ceiling. While this was only for compulsory EPF cover. In addition Labour Ministry decided to increase EPF cover to Rs. 25, 000 every month. However for this they should get approval from Ministry of Finance.

On other hand EPFO organisation asked EPF subscribers to submit Aadhaar card. While EPFO members can submit Aadhaar card by 30th June 2017 and 30th September 2017 for North-East States. In this way people can get all benefits of EPF organisation.

Current law for EPF cover

According to present law EPF benefits are compulsory. But it is only when there are 20 or more than 20 people in a company. In this case employers must give EPF benefits to all employees. However there is contribution of both employer and employee.

EPF contributions

Presently employees give 12% of basic pay to EPF. On other hand employer gives 3.67%. In addition employer gives 8.33% to EPS also. While Government of India gives 1.16% towards EPS. There are some more contributions made by employers. Below you can see list of contributions of employers towards different schemes.

Contributions of employers to various employee schemes

  • Employers give 0.5% to EDLI
  • They also give 0.65% which are EPF administrative charges
  • Further there is 0.01% EDLI handling fee
  • Therefore total of this contribution will be 13.61%

Government contribution

Apart from above contributions Indian Government also gives some more contribution. As they give about Rs. 3, 000 crore every year. Moreover this amount is for Rs. 1, 000 pension which people get every month. Besides Rs. 1, 000 is minimum pension that people get.

You can also know steps to get UAN number through PF number. But for this you can read complete process to get UAN with PF number.

Central Board of Trustees of EPFO decision on EPF cover

Central Board of Trustees or CBT also agreed for new proposal. Currently EPFO cover is for employees of Rs. 15, 000 cover. Additionally authorities increased wage threshold of EPFO in November 2014.

Even there was increase in medical or cash and insurance benefits. But this was only for ESIC. Here ESIC full form is Employees State Insurance Corporation. Further this increase was to Rs. 21, 000. Some authorities explained why it was easy to increase ESIC threshold limit.

They said that it is easy to increase ESIC limit. It is so because Government does not give grant. Therefore it is not difficult for increasing the limit. However this can never be the case with EPF. Hence you must wait for some time. As Finance Ministry has to decide EPF wage for EPF cover and EPF benefits. Finally you can know how to withdraw EPF balance amount.

Leave a Reply

Your email address will not be published.