The last amendment on the cap of salary was made in 2014 wherein the government had raised the PF salary limit from Rs 6500 to Rs 15000.
New Delhi: The government is mulling to raise the Employees’ Provident Fund Organisation (EPFO) wage ceiling from Rs 15000 to Rs 21000, as per reports in the Economic Times.
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ET, quoting official sources said that the government is considering the move in a bid to widen the social security net by increasing the wage ceiling.
It may be noted that the members of EPFO have long been in favor of the increase in the wage ceiling. The last amendment on the cap of salary was made in 2014 wherein the government had raised the PF salary limit from Rs 6500 to Rs 15000.
On one hand, while the new limit will bring more people under the ambit, it will also make a burden for the government. The matter is currently awaiting government’s green signal.
EPFO had in June last year taken steps to simplify the application process for a higher pension under the Employees’ Pension Scheme (EPS) for eligible employees. The process eased facility for those who lack a joint request or permission from their employer, opening new avenues for increased pension benefits.
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As per a circular issued on June 14, 2023, EPFO has outlined the required documents and the procedure for accepting higher pension applications. The process involves verification by the employer, digital conversion, examination by supervisors and account officers, and final communication to the applicants.
The new guidelines facilitate calculating pensions based on salaries that exceed the statutory limit of Rs 15,000 under the EPS of 1995. It’s noteworthy that only EPF members as of September 1, 2014, can opt for a higher pension.
EPFO field offices are now equipped to accept applications for higher pensions under the EPF scheme.
