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If you are also a job holder then this is job news for you. After this Union Budget, the Provident Fund deduction from your salary may increase. A report published in CNBC has claimed this. According to which the maximum salary limit for Provident Fund can be increased. This time it can be announced in the Union Budget. Finance Minister Nirmala Sitharaman can announce an increase in the salary limit in the budget.
Salary limit may change after 10 years
Let us tell you here that at present the salary limit for provident fund is Rs 15000. Earlier it was changed on 1 September 2014. At that time it was increased from Rs 6500 to Rs 15000. Several days ago it was proposed to increase it from 15000 to Rs 25000. If this proposal is implemented then it will be the first time after 10 years that the salary limit will be changed. The Ministry of Labor has also prepared a proposal in this regard.
Will contribution to PF increase?
Increasing the salary limit under the PF fund will increase the contribution of employees to the provident fund and their savings in PF will also increase. The government is considering this proposal to increase the scope of social security. Increasing the minimum salary limit will affect employees of both government and private sectors. The salary limit in the Employees State Insurance Corporation (ESIC) is also Rs 21000 since 2017. The Ministry of Labor is of the opinion 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 deposited by the employee and a part by the company. In which 12%-12% is deposited by the employee and the employer. The entire amount deducted from the employee's salary is deposited in his PF account. 8.33% of the company's contribution is deposited in EPS. The remaining 3.67% is deposited in the PF account.
Salary Sales
– 1 November 1952 to 31 May 1957 – Rs 300
– 1 June 1957 to 30 December 1962 – Rs 500
– 31 December 1962 to 10 December 1976 – Rs 1000
– 11 December 1976 to 31 August 1985 – Rs 1600
– Rs 2500 from 1 September 1985 to 31 October 1990
– 1 November 1990 to 30 September 1994 – Rs 3500
– 1 October 1994 to 31 May 2011 – Rs 5000
– 1 June 2001 to 31 August 2014 – Rs 6500
– From 1 September 2014 till now – Rs 15,000
