From October 15,
companies will have to step up their contributions to the Employees’ Provident
Fund Organisation (EPFO).
A new directive,
which took effect on September 1, 2014 raises the basic salary limit for PF
enrolment to Rs.15,000 from Rs. 6,500, bringing many new employees under the
EPFO umbrella.
Companies have to
contribute 12% of every enrolled employee’s basic salary towards PF, of which
8.33% goes into a pension scheme.
The 8th revision
since the wage ceiling was first set in 1952, comes after the cap was last
raised in 2001 from Rs. 5,000 to Rs. 6,500.
According to an EPFO
estimate, the latest change will increase the number of employees covered under
the provident fund scheme by 30%. The total EPFO membership was 8.90 Cr as of
March 2013.
In 2012 - 13, about
7.4 lakh establishments contributed to the EPF scheme, which had a corpus of
Rs. 1.8 lakh crore (as of March 2013). Payments for monthly pensions and
withdrawal benefits amounted to Rs. 9,038 crore.
PF ceiling revisions
in the EPF Scheme...!
Year and Date Rs
Nov. 1, 1952 Rs. 300
June 1, 1957 Rs. 500
Dec.31, 1962 Rs. 1,000
Dec.11, 1976 Rs. 1,600
Sep. 1, 1985 Rs. 2500
Nov. 1 1990 Rs. 3500
Oct 1, 1994 Rs.5,000
June 1, 2001 Rs. 6500
Sep. 1, 2014 Rs. 15,000
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