2024-08-29 00:31:11
New Delhi: With the announcement of Unified Pension Scheme (UPS) for central government employees, now private sector employees are also expected to get good news. There is a proposal to increase the salary limit for pension funds under the Employees Provident Fund Organization (EPFO). This will increase the contribution of employees to Provident Fund i.e. PF and pension. Reports suggest that the Union Finance Ministry may take a decision on this soon. The Labor Ministry has recommended increasing the salary limit from the current Rs 15,000 to Rs 21,000. This proposal was sent in April.
The Employee Pension Scheme (EPS) is managed by the Employees’ Provident Fund Organization (EPFO). The salary limit for EPS is Rs 15,000 from 1 September 2014. Increasing the salary limit will provide relief to employees and provide them better benefits. The proposal was sent in April and the Finance Ministry will soon take a final decision on it.
Salary ceiling to increase from Rs 15,000 to Rs 21,000
According to the proposal, the salary limit will be increased from Rs 15,000 to Rs 21,000. This will help in pension and EPF contribution of private sector employees. Increasing the EPS salary limit to Rs 21,000 will also increase the pension amount. This will strengthen the financial security of people on retirement.
How will the employees benefit?
By increasing the salary limit, more employees will come under the purview of EPF and EPS schemes. This simply means that they will get more pension after retirement. The EPF scheme is a social security network that provides financial security to employees after retirement. By increasing the salary limit, more employees will be able to avail this security.