Wage Ceiling Limit Under EPFO: The government is considering increasing the wage ceiling limit of people coming under the Employees Provident Fund Organization (EPFO). That is, the minimum salary of PF account holders can now be increased from Rs 15 thousand to Rs 21 thousand. This will increase the contribution of salaried employees to PF and at the same time they will also get increased pension after retirement because this will increase the contribution of the employer as well as the employees. The government's purpose behind doing this is to increase the social security coverage of employees. 

Pension will increase after retirement!

Usually 12% of the basic salary of the employees is deposited in EPF. The employer also contributes the same percentage of the basic salary. Out of this 12%, 8.33% is deposited in the EPS account. Currently, on the wage ceiling limit of 15 thousand, 8.33% of it is deposited in the employee's pension account i.e. EPS.

If the wage ceiling limit is increased to 21 thousand, then now 8.33 percent of this amount will be deposited in EPS. This will increase the pension after retirement. Till now, 8.33 percent of 15 thousand i.e. Rs 1,250 was deposited in EPS, whereas now, with the wage ceiling limit increased to 21 thousand, 8.33 percent of this amount i.e. Rs 1,749 will be deposited in the pension account. 

The amendment was made ten years ago

With this, after retirement, along with getting lump sum money of EPF, the EPS i.e. pension amount will also increase. Earlier, the government had amended the wage ceiling limit ten years ago in the year 2014. At that time it was increased from Rs 6,500 to Rs 15,000. Now since along with inflation, people's income has also increased, the government should consider amending it again. This demand has been made for a long time. If this happens, then crores of employees will benefit from this.