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Dear Members,

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.

The other proposal for raising basic wage ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500 per month is expected to bring in 50 lakh more workers under the ambit of schemes run by the EPFO.

The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year.

The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs 1,217 crore additional amount every year, and indicated that this amount can come down over a period of time with more members subscribing to EPS-95.

At present, government contributes 1.16 per cent of basic wage of workers as contribution toward the EPS-95. Government had provided around Rs 1,400 crore for the purpose in 2012-13.

The decision of enhancing the wage ceiling would also have some financial implication as government's contribution towards EPS-95 would increase towards EPS-95 as 50 lakh more wokers would join the schemes run by EPFO.

Regards,

GAUTAM KAR - 09331148166


From India, Kolkata

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RESPECTED SENIORS, Please guide me brief and simple way . Regards, Jr. HR DIGESH
From India, Surat
In brief, these are only announcements or news updates. These will become effective only when the EPF Scheme is amended and the EPS is amended. Notification in this regard will be issued only after these proposals are approved by the Government. Until then there is nothing for us to do.
From India, Madras
Dear All, Kindly provide the notification copy if approved by the central goverment. Regards, Gayathri.
From India, Vijayawada
Dear Members,

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
Dear ,
Mr. Gautam is there any circular from government authority stating that
ceiling is revised from 6500 to 15000 if so kindly update here
btw for sharing such information with all group members
Parag
From India, Dhule
EPFO and Mp act framed accordingly as per the real benefit for the beneficiaries
From India, Chennai
No circular is published. this is under discussion. It will be published soon after final decision.
From India, Mumbai
The Ministry of Labour Employees Provident Fund Organisation (EPFO) in its 5 million to shareholders in a timely manner asked to provide sustainable provident fund account number so that they change jobs do not need to transfer the provident fund account.

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.

Regards,

GAUTAM KAR - 09331148166


From India, Kolkata
As told PF wage ceiling increased from Rs 6,500 to Rs 15,000 Kindly see the Attached Notification
From India, Kolkata

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File Type: pdf CIRCULAR - Wage Celling.pdf (35.9 KB, 257 views)

Dear Seniors It is said about 20% EDLI relief. Can any one explain this matter with the exact calculation please. Regards Pijush
From India, Bagnan
Dear Members,
Is it fine if emloyer keep same PF deduction for all the members (except trainees) e.g. 15,000*12%= 1800 ? or it must be based on basic salary which varies from employee to employee ?
Please advise on urgent basis.
Thanks,
Nikita
From India, Jamnagar
Hi Nikita, You can calculate it on the ceiling rate of 15000. that will do. or can also deduct on actual wage (Basic+DA) if it is more than the ceiling that is 15000. Regards Pijush
From India, Bagnan
Dear Mr.Piyush,
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 ?
Please help.
Thanks,
Nikita
From India, Jamnagar
To, deal all please give me some ideas about calculation of pf if any body given salary of rs. 12000/-
From India, Kolhapur
Hi Nikita
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.
Regards
Pijush
From India, Bagnan
Dear Patil, PF is always calculated on the wage that includes only Basic and DA. Please see my previous post it may give you some idea.
From India, Bagnan
Hi All, Is it mandatory that employer and employee has to pay 1800 per mnth? even though their gross salary is less than 15000 per month? please advise.
From India, Madras
Dear Sir,
I am very thankful for such important information now i wish to clear my doubt about employees
who drawing salary less than Rs.15000 say ex. salary Rs.10000 what will be there basic in that case
From India, Dhule
# Anonymous
hello 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
As per my knowledge when a emloyer contributes 12 % of the salary of the employee, 3.67% goes to the Pf account and 8.33% goes to the Pension Scheme.
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
Dear Anusshka,
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.
Abbas.P.S
From India, Bangalore
basic employee employer employer total
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
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