The government increased the PF salary cap from Rs. 6500 to Rs. 15000 in 2014. by EPFO
Delhi, New: According to reports in the Economic Times, the government is considering raising the maximum salary for EPFO from Rs. 15000 to Rs. 21000.
The administration is exploring the move in an effort to increase the pay ceiling and broaden the social security net, according to ET, which cited official sources.
Noteworthy is the fact that EPFO members have traditionally supported raising the pay ceiling. In 2014, the government increased the salary cap for Provident Funds (PF) from Rs 6500 to Rs 15000. This was the most recent change to the cap.
On the one hand, the government will be burdened more by the increased limit, even if it will bring more individuals under its jurisdiction. The government’s approval on the topic is currently awaited.
In June of last year, EPFO took action to streamline the procedure for qualified employees to apply for a higher pension under the Employees’ Pension Scheme (EPS). The procedure made it easier for people to get greater pension benefits even in the absence of an employer’s consent or joint request.
In a June 14, 2023, circular, EPFO delineated the necessary paperwork and the process for considering petitions for higher pensions. Employer verification, digital conversion, account officers’ and supervisors’ inspections, and a final notification to the applicants are all part of the process.
The revised guidelines make it easier to calculate pensions based on earnings that are higher than the Rs 15,000 statutory cap set by the EPS of 1995. Interestingly, the option to choose a larger pension is limited to EPF members starting of September 1, 2014.
With the EPF plan, EPFO field offices can now accept applications for higher pensions.