schakraborty_69 Started The Discussion:
If the Govt. really wants the employees of private sector reap benefit of the Employees Pension Scheme 1995, then it should increase the maximum limit from Rs. 6500.00 to at least Rs. 15000.00 at per with ESI limit. The rate has not been revised for more than 15 years. Normally employers deduct P. F. contribution on Rs. 6500.00 irespective of actual salary which is generally much more. On the basis of pensionable salary of Rs. 6500.00, an employee gets a paltry amount as monthly pension after completion of 20 or more years of service. This amount is not adequate for social security for an old man considering the present high inflation.
Yes, I totally agree with Schakraborty.
Government should increase the maximum limit for PF deduction. When ESIC deduction maximum limit is upto Rs. 15,000/-. Then why not for PF?.
This maximum limit for PF deduction should be raised considering the inflation.
We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab in the new Fiscal Year.
Yes employee can voluntarily contribute even upto 100% but employer are restricting to 780/-(6500 wage ceiling) which may atleast increased to 10000 or 15000 as wage ceiling so that employer will contribute Rs.1200 or Rs.1800 respectively.
This amount is a good savings for the employee whose basic is more than 10000 or 15000 where he will get between 400 to 1000 as increase in contribution.
When the ESI increased the wage ceiling from 10000 to 15000 the PF wage ceiling should have been also increased so that many lakh employees would have been benefited.
If Pf ceiling increased employees are not going to be benefited because both the part employees as well as employer share to be deducted from the salary of the employee because every thing is added in your CTC as far as PF contribution one can deduct on his actual full Basic+ DA the ceiling is for Pension fund so i don't thing that by increasing the ceiling for PF is much beneficial.
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