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EPFO Contribution Limit: If you are also employed and PF is deducted from your salary every month, then this news is for you. Yes, the government is taking many steps for the convenience of the employees. On one hand, there are reports that the Labor Ministry is preparing changes in PF contribution. The effect of this will be that the pension of the employees will increase after retirement. Apart from this, there are also reports that the government is planning EPFO 3.0. Under this, many new facilities can be provided to the customers.
Demand to increase pension amount
Let us tell you that for a long time, employee organizations have been demanding to increase the amount of pension received under EPFO. Keeping this in mind, the Labor Ministry may allow EPFO members to contribute more for higher pension. For this, the Ministry is considering making amendments in the Employees’ Pension Scheme 1995 (EPS-95). At present 12 percent of the basic salary of an EPFO member is deposited in the EPF account. The employer will also have to contribute the same amount. Of this, 8.33 percent goes to EPS-95, the remaining 3.67 percent is deposited in the EPF account.
PF money will be withdrawn from ATM!
The report claims that the government may announce plans for EPFO 3.0 in the context of PAN 2.0. Under this, along with increasing the pension contribution of the employees, the employees can also get the facility to withdraw PF money from ATM. The Labor Ministry is planning to launch a card for the convenience of PF customers, through which you will be able to withdraw PF money from ATM in future. This scheme may be implemented by May-June next year.
Pension amount will increase due to higher contribution
If excess contribution is made in the EPS-95 account, it will affect the future pension. Therefore, the option of allowing higher contribution in EPS is being considered by the Labor Ministry. Under the change, employees may be allowed to contribute more in EPS-95 to increase their pension. Apart from improving social benefits, the Modi government at the Center is also focusing on creating new employment opportunities.
Some media reports have also claimed that the government is considering removing the 12 percent limit applicable on PF contribution. Under this, many new facilities can be provided to the employees. It is being claimed that employees can be given the option to contribute as per their savings. Under this, employees will be allowed to deposit more than the limit in the EPFO account. However, the employer’s contribution will be determined as per the salary.