Breaking News on Labour Laws….

 

PF Salary ceiling to be Increased to Rs. 25,000/- from Rs.15,000/- as recommended by CBT to Ministry of Labour & Employment.

CBT members have proposed to the Ministry of Labour to cut contribution and increase the EPF cover wage limit for the country’s 4.5 crores PF members.

EPFO Central Board of Trustees (CBT) members have started pressuring them citing the interest of employees.

Members have demanded the Labour Ministry to include it on the agenda of the next board meeting.

The Board members have made it clear in the proposal that, like ESIC of the Ministry, the ceiling of the coverage of employees has been increased to Rs. 21,000 salary, similarly, the wage limit of contribution deduction of PF members should be increased from Rs. 15,000/- pm to Rs. 25 000/- pm.

At present, the maximum amount of PF contribution is Rs.1800/- per month on PF Salary of Rs. 15,000/- .

The employer contributes the same amount, but given the time, this amount is less.

Therefore the deduction limit should be on PF salary of Rs. 25,000/- pm.

EPFO CBT member Harbhajan Singh said to media that the members have given the proposal to the Union Labour Minister along with the Ministry.

Increasing the cover limit will strengthen the PF account of the employees and will also deposit a huge amount in EPFO ​​Fund.

Harbhajan Singh further said that the minimum pension is still Rs. 1000/- pm which inadequate according to the current time and circumstances.

The members have proposed to increase it to Rs. 7,500/- pm.

EPFO can use the funds lying in inoperative accounts to increase the pension.

Unclaimed money has never been cleared. In the year 2014, the unclaimed amount was Rs. 40 thousand crores and in the last financial year, it was stated as Rs. 27 thousand crores.

These issues will also come up in the board meeting.

This is just FYI and nothing has been finalized so far.