The circular for the new ceiling limit has not been released yet, but the EPFO has decided to increase the PF limit. Please refer to the details below:
EPF's Monthly Pension and Wage Ceiling Revised
New Delhi: Wednesday, 05 Feb 2014.
Trustees of the retirement fund body EPFO decided on Wednesday to amend the scheme to provide a minimum monthly pension of Rs. 1,000, which will immediately benefit about 28 lakh pensioners.
The Central Board of Trustees (CBT), the apex decision-making body of the EPFO, also decided to amend the EPF Scheme 1952 to raise the monthly wage ceiling to Rs. 15,000. This change aims to cover more workers under its various social security programs like the Employees' Provident Fund (EPF) Scheme 1952, Employees' Pension Scheme 1995 (EPS-95), and Employees' Deposit Linked Insurance (EDLI) Scheme 1976.
Currently, workers receiving basic wages, including basic pay and DA, of up to Rs. 6,500 are covered under the ambit of the Employees' Provident Fund Organisation (EPFO).
According to the EPFO, the Finance Ministry has already approved the Labour Ministry’s proposals for the entitlement of a minimum monthly pension of Rs. 1,000 and enhancing the wage ceiling to Rs. 15,000 per month.
The government would need to provide an additional amount of Rs. 1,217 crores to ensure the minimum pension of Rs. 1,000 starting in 2014-15. Pensioners are, therefore, expected to benefit from April 1 this year.
The Central Board of Trustees (CBT), the apex decision-making body of the EPFO, had earlier approved the two proposals, following which the Labour Ministry pursued it with the Finance Ministry.
The move to ensure a Rs. 1,000 minimum pension under EPS-95 will immediately benefit about 28 lakh pensioners, including five lakh widows. There are about 44 lakh pensioners in total.
The other proposal for raising the wage ceiling under the EPF Scheme from Rs. 6,500 to Rs. 15,000 is expected to bring in 50 lakh more workers under the ambit of schemes run by the EPFO.
At present, under EPS-95, EPFO subscribers cease to be members of the pension scheme after attaining the age of 58 years and can apply for the fixation of their pension thereafter. However, there is no age bar for contributing to the EPF and EDLI schemes run by the EPFO.