EPFO Circular on Wage Ceiling and Pension Scheme Amendments
The EPFO has released a circular dated 28 Aug 14, wherein it has confirmed the raise in PF applicability of the wage ceiling from 6,500 to 15,000. There are also some amendments in the pension scheme, such as the guaranteed minimum eligible monthly pension will be 1,000 and EDLI. All these amendments will be effective from 01 Sep 14.
Regards,
Eswar
From India, Mumbai
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8The EPFO has released a circular dated 28 Aug 14, wherein it has confirmed the raise in PF applicability of the wage ceiling from 6,500 to 15,000. There are also some amendments in the pension scheme, such as the guaranteed minimum eligible monthly pension will be 1,000 and EDLI. All these amendments will be effective from 01 Sep 14.
Regards,
Eswar
From India, Mumbai
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Hello Eswar,
Yes, you are correct about the changes in the EPF (Employees' Provident Fund) and pension scheme. The EPFO (Employees' Provident Fund Organization) had indeed issued a circular on 28 August 2014, raising the PF applicability of the wage ceiling from ₹6500 to ₹15000. This means that employees earning up to ₹15000 per month are now mandatorily covered under the EPF Act.
🎉 Here's what the changes entail:
1. Raise in PF Applicability: Earlier, the EPFO covered employees earning up to ₹6500/month. But with the amendment, this limit was increased to ₹15000/month. So employees earning up to ₹15000/month will now have a portion of their salary deducted and contributed to the PF.
2. Pension Scheme Amendments: The pension scheme has undergone some changes as well. The minimum eligible monthly pension has been increased to ₹1000. This is a significant boost for low-income earners.
3. EDLI (Employees' Deposit Linked Insurance Scheme): The maximum insurance limit under EDLI has been increased to ₹6 lakhs. This means that in case of an employee's sudden demise, their family is entitled to receive an amount up to ₹6 lakhs.
These amendments were indeed effective from 01 Sep 14. So, if you or your colleagues fall under these categories, the changes should have been implemented in your respective organizations from that date.
🎉 Always check your monthly salary slip to ensure the correct deductions are being made and match them with the PF passbook available on the EPFO portal. If you find any discrepancies, do bring it to your employer's notice immediately.
I hope this clears your query. If you have more questions or need further clarification, feel free to ask.
From India, Gurugram
Acknowledge(0)Amend(0)
Yes, you are correct about the changes in the EPF (Employees' Provident Fund) and pension scheme. The EPFO (Employees' Provident Fund Organization) had indeed issued a circular on 28 August 2014, raising the PF applicability of the wage ceiling from ₹6500 to ₹15000. This means that employees earning up to ₹15000 per month are now mandatorily covered under the EPF Act.
🎉 Here's what the changes entail:
1. Raise in PF Applicability: Earlier, the EPFO covered employees earning up to ₹6500/month. But with the amendment, this limit was increased to ₹15000/month. So employees earning up to ₹15000/month will now have a portion of their salary deducted and contributed to the PF.
2. Pension Scheme Amendments: The pension scheme has undergone some changes as well. The minimum eligible monthly pension has been increased to ₹1000. This is a significant boost for low-income earners.
3. EDLI (Employees' Deposit Linked Insurance Scheme): The maximum insurance limit under EDLI has been increased to ₹6 lakhs. This means that in case of an employee's sudden demise, their family is entitled to receive an amount up to ₹6 lakhs.
These amendments were indeed effective from 01 Sep 14. So, if you or your colleagues fall under these categories, the changes should have been implemented in your respective organizations from that date.
🎉 Always check your monthly salary slip to ensure the correct deductions are being made and match them with the PF passbook available on the EPFO portal. If you find any discrepancies, do bring it to your employer's notice immediately.
I hope this clears your query. If you have more questions or need further clarification, feel free to ask.
From India, Gurugram
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Wage-ceiling-ep f-6500-15000-ci rcular-circular .pdf
Pension Wage Ceiling Increase Impact.xls