Employees will be able to get more pension Under the retirement savings scheme of EPFO
EPFO retirement saving scheme: The government is going to amend the salary limit for the retirement savings scheme of the Employees Provident Fund Organization.
The government is preparing to increase the contribution of more amount to the employees to get pensions after retirement. This will clear the way for the employees to get more amount as a pension. According to the report, the government may soon revise the salary limit for the flagship retirement saving scheme of the Employees’ Provident Fund Organization (EPFO).
The central government runs a retirement savings scheme for employees through EPFO. This scheme is only for those enterprises which have more than 20 employees. Currently, the salary limit for the Employees’ Provident Fund (EPF) scheme of EPFO is Rs 15,000 per month. It was last revised and increased from Rs 6,500 per month in the year 2014. The government is now again preparing to increase this salary limit to Rs 21,000 per month.
This decision of the government will increase the mandatory contribution of both the employees and the employers, which will help the employees to save more for their retirement. With this increase, more employees will be able to take advantage of the social security coverage of EPFO. The EPFO salary limit can also be clubbed with the higher salary limit of Rs 21,000 per month under the Employees’ State Insurance Corporation.
The court also agreed:-
In the case of the Employees’ Pension Scheme, the Supreme Court had said that the employees who have not yet opted for enhanced pension coverage before 2014, have been given a chance to choose from it in the next four months from November. This has cleared the way for employees to contribute more to get more pensions. Employees will have to give a declaration to EPFO along with the employer for this. Now the central government is also preparing to clear the way for more contributions to pensions by increasing the salary limit.