None
EN
EPF salary limit may be raised to Rs 25,000: How your PF and pension could change
['Shine Mohan']
Mathrubhumi English
New Delhi: The Central Government is preparing to increase the maximum salary ceiling under the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) from Rs 15,000 to Rs 25,000.
Under the EPF scheme, which has been in force since September 1, 2014, the wage ceiling has remained at Rs 15,000.
Of the employer's contribution, Rs 1,250 (8.33 per cent of Rs 15,000) is credited to the pension fund, while the remaining amount goes to the provident fund.
If the salary ceiling is increased to Rs 25,000, the employee's contribution to the EPF will rise to Rs 3,000.
For existing EPF members, the employer's contribution to the pension fund would increase from Rs 1,250 to Rs 2,082, resulting in higher pension benefits upon retirement.