From India, Madras
The Central Board of Trustees (CBT), the apex decision making body of EPFO, will also decide on amending EPF scheme 1952 to raise the monthly wage ceiling to Rs 15,000 to cover more workers under its various social security programmes like provident fund, pension and employee deposit-linked insurance.
At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit Employees' Provident Fund Organisation (EPFO).
"The Finance Ministry has approved the Labour Ministry's proposal to provide a minimum pension of Rs 1,000 per month and enhance the wage ceiling to Rs 15,000. Now, the trustees would meet on February 5 to approve the amendment in schemes run by EPFO to operationalise the two decisions," an official source said.
The Central Board of Trustees (CBT), the apex decision making body of EPFO, had earlier approved the proposal, following which the Labour Ministry pursued it with the Finance Ministry.
According to sources, after the nod given by the CBT, headed by the Labour Minister Oscar Fernandes, the two proposals would be put before the Union Cabinet for approval as the government would have to make provision of funds for the purpose.
The source further said that Finance Minister P Chidambaram may also make announcement on entitlement of minimum monthly pension of Rs 1,000 in his interim budget next month.
The entitlement of minimum monthly pension of Rs 1,000 to workers in the organised sector under the Employees' Pension Scheme 1995 (EPS-95), would benefit 27 lakh pensioners immediately.
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.
From India, Bangalore
According to sources, Labor Secretary Gouri Kumar on February 5 Central Board of Trustees (CBT) of the EPFO meeting in terms of direction - direction. CBT top decision making body of the organization.
The source said, "Central Provident Fund Commissioner KK Jalan Kumar EPFO board's next meeting to provide information about the progress of the case and asked to provide a timetable for completing the work." Date of the next meeting has not been decided yet.
Permanent PF (Provident Fund) account number in areas such as construction, will help to provide social security benefits to employees, contractors because these are areas where they stay and work space - times change.
According to the work plan provided by the Ministry of Labour, EPFO system to prepare for a specific employee number, which will be instrumental in giving facilities on the lines of core banking services.
EPFO to give shareholders a permanent PF account number must find a central server, which will connect all the 123 offices.
EPFO shareholders present at the job change is to apply to transfer the PF accounts. They change jobs every time a new PF account number is given.
GAUTAM KAR - 09331148166
From India, Kolkata
Many thanks for ur ans. I understood that Employer can keep same PF deduction for all the employees(Rs.1800) regardless of Basic+DA salary. Actually, we are new for PF so I have one more query re same.
If the employer is going to deduct PF as a part of CTC, then the contribution must be 13.61% of 15,000= 2042 (8.33%- Pension, 3.67%- PF, admin charges- 1.10, EDLI- 0.5%, Admin charges-0.01%). Is it true ?
From India, Jamnagar
Thats right.things are same only the ceiling wage is increased by this new amendment. Employer contribution would be 13.61% on the wage but you need deduct only 12% from any employee's wage.
for instance- basic+da= 12000
employee contribution= 1440 (12%)
employer contribution= 1633 (13.61%)
Hope it will help. For more clarification post your query.
From India, Bagnan
#Anonymoushello can anyone help me as am new with all these amendments. the employees whose PF was deducted earlier 780 as minimum, their PF now would be deducted as 1800 on 15000 as 12%. pls help. Am not clear with the amendment. and one more thing i read. that 12 months have been replaced with 60 months in new law. what does that mean??
From India, Delhi
Now if a person draws a salary of 20,000 and wants to be a member of EPF, the employee and emloyer will both contribute 12% of 15,000. But the emloyee cannot be a member of pension Scheme because the limit is 15,000.
So how will an emloyer contribute 12 % in this case. Because he does not have a Pension account. 3.67% of 15,000 will go to the P.F account but where will 8.33% of 15,000 be deposited?
From India, Kolkata
If an EPF member is not an EPS member or already availed pension, the entire contribution will be remitted to PF. For example, If PF contribution is Rs. 1800 each for both employee and employer; the entire amount i.e 1800+1800=3600 will be credited to PF. For an EPS member, 1250 will be paid to pension fund and 550 (employer share) + 1800 (employee share)will be paid to PF.
From India, Bangalore
epf eps 8.33 epf 3.67
old 15000 1800 541 1259 3600 - earlier there was ceiling of 541 for the pension fund
new 15000 1800 1250 550 3600 - now this ceiling revised to 1250 for the pension fund
no change in deduction or employer contribution only thing is the employer provident fund will be reduced and pension fund will be more
for more clarification reach my mail
From India, Chennai