EPFO, Budget 2024: The Finance Minister may announce in the budget to increase the minimum basic salary limit for contribution to the Employees’ Provident Fund (EPF) from Rs 15,000 to Rs 25,000. This will increase the contribution of EPF account holders to the pension fund and PF.
EPFO, Budget 2024: EPF account holders can get a big gift in this time’s budget. The Finance Minister may announce in the budget to increase the minimum basic salary limit i.e. basic salary for contribution to the Employees’ Provident Fund (EPF). The Ministry of Labor and Employment has prepared a proposal to increase it from Rs 15,000 to Rs 25,000. If this happens, the rules will be amended after about 10 years. Earlier in September 2014, the basic salary was increased from Rs 6,500 to Rs 15,000. If this happens, the contribution of EPF account holders to the pension fund and PF will increase.
How to get benefit
Under the current rules, both the employee and the employer contribute 12-12 percent on the basis of basic salary in the EPF account. While the entire contribution of the employee is deposited in the Provident Fund account, 8.33 percent of the employer’s contribution goes to the Employees’ Pension Scheme and the remaining 3.67 percent is deposited in the PF account.
If the minimum basic salary is Rs 25000, then the contribution of each will be Rs 3000. Then out of the employer’s contribution, Rs 2082.5 will go to the pension fund and Rs 917.5 to the PF account. That is, the PF contribution will increase by Rs 1200.
Already high in Employees’ State Insurance
On the other hand, if the salary limit is seen in the Employees’ State Insurance Corporation (ESIC), then it has been a limit of Rs 21,000 since the year 2017. In such a situation, there is a consensus within the government that the salary limit should be made the same under the two schemes. Considering this, there is a possibility that a big announcement may be made in the budget this time.
