Dear Sir / Madam
We had already informed you about likelihood of increase in ceiling limit of PF since last 1 year. The GOI had made those proposals in the finance Act of 2014. Now EPFO has circulated the Govt. of India Gazette Notification dated 22 August 2014 publishing the Employees’ Provident Fund (Amendment) Scheme, 2014, Employees’ Deposit Linked Insurance (Amendment) Scheme, 2014, Employees’ Pension (Amendment) Scheme, 2014 and Employees’ Pension (Second Amendment) Scheme, 2014. All amendments are set to take effect from 01 September, 2014.
At a glance:
1. Wage ceiling limit is increased from Rs 6500/- to Rs 15000/- for EPF, E-Pension and EDLI. Thus more employees will now be mandatorily covered. For employees already covered & having pf wages above Rs 6500/- will derive more benefit albeit their in-hand salary will get reduced. This will also result in overall increase in Cost to Company of employees as Employers share will also increase in equal proportion.
2. Pension to be calculated based on salary of last 60 months.
3. EDLI benefit increase by further 20%
4. Minimum monthly pension to be Rs 1000/- pm
5. New Employees joining on or after 1st September 2014 and having PF wages greater than 15000/- pm will not become member of Employees Pension Scheme. Their entire Employers contribution will be paid in PF.
I am enclosing the Notification for your reference. Do write to me in case you have any queries.
regards
bhavik chheda
[Login to view] | +91-9833009299
Chheda Consultancy Services : Consultants for Payroll Processing, Labour Laws, Provident Fund, ESIC, Professional Tax, MLWf, Shop Licence, etc in Mumbai, Maharashtra
We had already informed you about likelihood of increase in ceiling limit of PF since last 1 year. The GOI had made those proposals in the finance Act of 2014. Now EPFO has circulated the Govt. of India Gazette Notification dated 22 August 2014 publishing the Employees’ Provident Fund (Amendment) Scheme, 2014, Employees’ Deposit Linked Insurance (Amendment) Scheme, 2014, Employees’ Pension (Amendment) Scheme, 2014 and Employees’ Pension (Second Amendment) Scheme, 2014. All amendments are set to take effect from 01 September, 2014.
At a glance:
1. Wage ceiling limit is increased from Rs 6500/- to Rs 15000/- for EPF, E-Pension and EDLI. Thus more employees will now be mandatorily covered. For employees already covered & having pf wages above Rs 6500/- will derive more benefit albeit their in-hand salary will get reduced. This will also result in overall increase in Cost to Company of employees as Employers share will also increase in equal proportion.
2. Pension to be calculated based on salary of last 60 months.
3. EDLI benefit increase by further 20%
4. Minimum monthly pension to be Rs 1000/- pm
5. New Employees joining on or after 1st September 2014 and having PF wages greater than 15000/- pm will not become member of Employees Pension Scheme. Their entire Employers contribution will be paid in PF.
I am enclosing the Notification for your reference. Do write to me in case you have any queries.
regards
bhavik chheda
[Login to view] | +91-9833009299
Chheda Consultancy Services : Consultants for Payroll Processing, Labour Laws, Provident Fund, ESIC, Professional Tax, MLWf, Shop Licence, etc in Mumbai, Maharashtra
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