How Will Raising the Provident Fund Wage Cap to Rs 15,000 Impact Your Savings and Investments?

Finance Ministry May Raise Wage Cap for Provident Fund to Rs 15,000 per Month

The finance ministry is considering a proposal that can sharply reduce the government's borrowing costs, bring long-term savings into the cash-strapped infrastructure sectors, deepen the corporate bond market, and possibly even make Indian stocks less vulnerable to the whims of foreign institutional investors.

The proposal, moved by the labour ministry, seeks a conditional pact with the finance ministry, under which the finance ministry will raise the statutory wage ceiling for provident fund contributions to Rs 15,000 per month from Rs 6,500. The labour ministry will, in turn, commit to route a bulk of the incremental annual inflows of Rs 90,000 crore into government bonds and infra projects, where it does not invest.

Read further at http://Finance Ministry may raise wa...Economic Times.

Proposal on Provident Fund Wage Cap

The Provident Fund (PF) is not currently in line with the proposed wage cap. This is only a proposal and has not yet been approved.

The article also states that it is just a proposal by the Finance Minister and not an approved notification. Nowhere in the article is it written that it is approved or the bill has passed.

Yep, but your topic heading is misleading. That is what I was saying.