EPFO Rule Change 2025: Right now EPFO can abolish the limit of 12 percent contribution of employees. Abolishing it means that this limit can be increased (EPFO employee contribution increase).
EPFO rule change 2025: The Employees Provident Fund Organization (EPFO) is planning to make big changes in the interest of employees soon. If sources are to be believed, many new facilities and policies can be implemented under EPFO 3.0, which include changes like withdrawing PF money from ATM, investing in equity, and abolishing the limit of employee contribution. If sources are to be believed, the biggest change in this can be seen regarding the deposit limit by the employees. Right now EPFO can abolish the limit of 12 percent contribution of employees. Abolishing it means that this limit can be increased (EPFO employee contribution increase). This is being done keeping in mind social security. If this change happens, then about 6.7 crore employees of the country will get a big benefit.
The limit of employees’ contribution will be abolished
At present, employees contribute 12% of their basic salary every month under the EPF account. The employer’s contribution is also the same. But now the government is considering abolishing this limit. The biggest reason behind this change is that employees get more pension and retirement fund after retirement. Under the new scheme, employees will be able to contribute more than 12% of their salary to PF.
What will be the benefits of the change?
– Big fund after retirement
– Increase in pension
– Better investment options
Employees’ contribution
- Employee: Contribution of 12% of basic salary
- Employer: Contribution of 12% of basic salary
The employer’s 12% contribution is deposited like this:
- – 8.33% in pension scheme
– 3.67% in PF account
What will change?
According to sources, after the new rule or change comes, employees can get the freedom to decide their limit. However, it will not be less than 12%. The option above that will be optional. Only the limit of employee contribution is being considered to be abolished. This will not affect the employer’s contribution.
What is the employer’s contribution?
According to EPFO rules, currently out of the 12% contribution by the employer, 8.33% is deposited in the employee’s pension scheme account. At the same time, 3.67% is deposited in the EPF account every month. However, its maximum limit is Rs 15,000. Employees who have joined after September 1, 2014 are allowed to contribute only 8.33% or a maximum of Rs 15,000 in their pension fund.
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