Provident Fund News: There may be a big announcement in the budget regarding the Provident Fund. The Ministry of Labor & Employment has prepared a proposal for this.
CNBC-Awaaz has received important information from sources regarding Provident Fund. According to the information received, the maximum salary limit for Provident Fund may increase. Its announcement is possible in the Union Budget. This time in the budget, Finance Minister Nirmala Sitharaman may announce an increase in the wage ceiling. Currently, the wage ceiling for Provident Fund is Rs 15,000. It was last increased from Rs 6500 to Rs 15,000 on 1 September 2014.
Now it is proposed to increase it from Rs 15,000 to Rs 25,000. The Ministry of Labor & Employment has prepared a proposal for this. If the wage ceiling increases under the Provident Fund, then it can be a positive decision for the employees in many ways. By increasing the limit, the Provident Fund contribution of the employees will increase, which will help in increasing their savings in future. Actually, the government is preparing this proposal with the aim of increasing the scope of social security.
PF Rules: When and how much did the wage ceiling increase
| Duration | Wage Ceiling (per month) |
| 1 November 1952 to 31 May 1957 | ₹300 |
| 1 June 1957 to 30 December 1962 | ₹500 |
| From 31 December 1962 to 10 December 1976 | ₹1000 |
| 11 December 1976 to 31 August 1985 | ₹1600 |
| From 1 September 1985 to 31 October 1990 | ₹2500 |
| 1 November 1990 to 30 September 1994 | ₹3500 |
| 1 October 1994 to 31 May 2011 | ₹5000 |
| From 1 June 2001 to 31 August 2014 | ₹6500 |
| From 1 September 2014 to present | ₹15000 |
Under the law related to Employees Provident Fund, the employee and the employer contribute about 12% – 12% of the basic salary, dearness allowance or any other allowance to the EPF account. The entire contribution of the employee is deposited in the Provident Fund account. At the same time, 8.33% of the employer’s share is deposited in the Employees’ Pension Scheme and the remaining 3.67% is deposited in the Provident Fund account. EPFO subscribers get the benefit of Provident Fund, pension and insurance under the EPF & MP Act, 1952.
