Good news to all employees in the private sectors! The present government is keen to increase the wage ceiling for EPFO, which will lead to the expanded pension benefits and increased pension related security for millions of workers.
Why This Matters
Employees in the private sector have in the past been excluded from the government’s Universal Pension System that mainly covers public sector employees. But now, this change wants to do the same for the private sector employees, thereby providing them more money to rely on once they retire from work.
Advantages of the New Limit of EPFO
Due to increased upper salary ceiling for EPFO, private employees would get a better proportion of their salary contributed to the EPF. It will not only mean a greater pension after retirement but also, a far better social security. While it may mean a bit less amount being taken home each pay check that could be the difference maker for the retirement years.
The Proposed Change
The Ministry of Labour has recently advised raising the current EPFO monthly salary cap from INR 15,000 to INR 21,000. This new limit if approved may lead to the retirement pension of private sector employees being as high as ₹10,050 per month.
A Step Forward to Financial Stability
With this increase the government realise the fact that social security of all employees, both those in the private and the public sector is crucial. Until the last judgement, this proposition is a positive signal of the better financial tomorrow for the employee of private sector.
