GG News Bureau
New Delhi, 15th July. In what could be a significant boost for salaried individuals, the upcoming Union Budget might see an increase in the Provident Fund (PF) ceiling following media reports. Currently set at ₹15,000, the Wage Ceiling for PF contributions could potentially be raised to ₹25,000. This proposal marks the first revision in the Wage Ceiling in a decade, since it was raised from ₹6,500 to ₹15,000 in September 2014.
The Labour Ministry has also proposed amendments related to PF contributions, indicating a potential increase in savings under the PF scheme. This move is expected to enhance social security measures, benefiting both government and private sector employees alike.
Under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, a portion of the employee’s salary is contributed towards EPF, with an additional contribution from the employer towards EPS (Earnings Per Share) and PF accounts. These contributions serve as crucial savings for employees, ensuring financial security post-retirement.
The government’s consideration to align wage limits under EPF and ESIC (Employees’ State Insurance Corporation) is aimed at streamlining social security benefits across sectors. Both schemes currently accumulate contributions at a rate of 12% each from employers and employees, securing future financial stability for workers.
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