A big announcement may be made after 10 years, salaried employees will benefit

If you are also a job holder then this news is useful for you. Yes, after this Union Budget, the amount of Provident Fund deducted from your salary may increase. The maximum salary limit for Provident Fund may be increased. An announcement in this regard may be made in this year's Union Budget. Finance Minister Nirmala Sitharaman may announce an increase in the salary limit in the budget.

Salary limit can be changed after 10 years

Let us tell you that at present the salary limit for provident fund is Rs 15,000. It was first revised on 1 September 2014, when it was increased from Rs 6500 to Rs 15,000. Recently it was proposed to increase it from Rs 15000 to Rs 25000. If the proposal is accepted, then the salary cap will change for the first time in 10 years. The Ministry of Labor has also prepared a proposal in this regard.

Employees' contribution to provident fund will increase!

Increasing the salary limit under the PF fund will increase the contribution of employees to the provident fund and will also increase their savings in PF. The government is considering this proposal to increase the scope of social security. The increase in the minimum wage limit will affect employees of both government and private sectors. The salary limit in the Employees State Insurance Corporation (ESIC) is also Rs 21,000 since 2017. The Ministry of Labor believes that the salary limit under EPF and ESIC should be the same.

Under the Employees Provident Fund Act 1952 (EPFO), a part of the salary is contributed by the employee and a part by the company. In this, the employee and the employer contribute 12-12 percent. The entire amount deducted from the employee's salary is deposited in his PF account. 8.33% of the company's contribution goes to EPS, the remaining 3.67% is deposited in the PF account.

When was the salary cap increased and by how much?

From 1 November 1952 to 31 May 1957 – Rs. 300

From 1 June 1957 to 30 December 1962 – Rs. 500

From 31 December 1962 to 10 December 1976 – Rs. 1000

11 December 1976 to 31 August 1985 – Rs. 1600

1 September 1985 to 31 October 1990 – Rs. 2500

1 November 1990 to 30 September 1994 – Rs. 3500

From 1 October 1994 to 31 May 2011 – Rs. 5000

From 1 June 2001 to 31 August 2014 – Rs. 6500

From 1st September 2014 till date – Rs. 15000