There is good news for EPF account holders. The government may soon issue a new guideline of EPFO. In this, the government is going to make some new changes. This biggest change can be about the veg limit. In the recent times, under the Employees Provident Fund Organization (EPFO), employees and employers are contributed to 12 percent of the basic salary. In which the wedge limit is fixed at 15 thousand rupees. But according to media reports, the government is now preparing to change this limit.
EPF and EPS will benefit
According to media reports, now the government can make it 21 thousand rupees. Due to this, employees will get the benefit of EPF and EPS. The veg limit of EPFO is considering increasing from 15 thousand rupees to 21 thousand rupees. If this change is applicable, then it will affect millions of employees and employees.
What is the rule of EPF and EPS?
According to the current rules of EPFO, employees whose basic salary is Rs 15,000 or less gives the benefit of Employees Provident Fund (EPF) and EPS (Employees Pension Scheme). Both the employee and the employer have to deposit 12 percent of the salary in EPF. Out of the 12 percent contribution of the Emloyer, 8.33 percent share in the EPS, but it can be a maximum of Rs 1,250.
What can change?
If the government pays salary limit to Rs 15 thousand to 21 thousand rupees, then what will be the changes in it. This will bring more money in the EPS, now where the EPS gives Rs 1,250 to the employer, it will be Rs 1,749 after the increased limit. This means that after retirement you will get more pension.
What will be the effect on your salary?
What will be the effect on your salary, let us tell you if the PF cuts can increase then your net in these hand salary may be slightly reduced. But you will get the benefit of this at the time of retirement. Savings will be more for retirement.
How long will this change happen?
For information, let us know that so far no official notification has been issued by the EPFO or the government. But if sources are to be believed, it is being discussed and it is likely that the government can take a decision on it soon. For a long time, the labor union and pensioners also demanded that the wedge limit be increased.