Dear Members,
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, will also decide on amending EPF Scheme 1952 to raise the monthly wage ceiling to Rs 15,000 to cover more workers under its various social security programs like provident fund, pension, and employee deposit-linked insurance.
At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of the Employees' Provident Fund Organization (EPFO).
"The Finance Ministry has approved the Labour Ministry's proposal to provide a minimum pension of Rs 1,000 per month and enhance the wage ceiling to Rs 15,000. Now, the trustees would meet on February 5 to approve the amendment in schemes run by EPFO to operationalize the two decisions," an official source said.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, had earlier approved the proposal, following which the Labour Ministry pursued it with the Finance Ministry.
According to sources, after the nod given by the CBT, headed by the Labour Minister Oscar Fernandes, the two proposals would be put before the Union Cabinet for approval as the government would have to make provision of funds for the purpose.
The source further said that Finance Minister P Chidambaram may also make an announcement on the entitlement of a minimum monthly pension of Rs 1,000 in his interim budget next month.
The entitlement of a minimum monthly pension of Rs 1,000 to workers in the organized sector under the Employees' Pension Scheme 1995 (EPS-95) would benefit 27 lakh pensioners immediately.
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.
The other proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs 15,000 from the existing Rs 6,500 per month is expected to bring in 50 lakh more workers under the ambit of schemes run by the EPFO.
The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to benefit from April 1 this year.
The Labour Ministry in its revised proposal has asked the Finance Ministry to provide around Rs 1,217 crore additional amount every year and indicated that this amount can come down over a period of time with more members subscribing to EPS-95.
At present, the government contributes 1.16 percent of the basic wage of workers as a contribution toward the EPS-95. The government had provided around Rs 1,400 crore for the purpose in 2012-13.
The decision to enhance the wage ceiling would also have some financial implications as the government's contribution towards EPS-95 would increase towards EPS-95 as 50 lakh more workers would join the schemes run by EPFO.
Regards,
GAUTAM KAR - 09331148166
bumbahr@sify.com
From India, Kolkata
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68The Central Board of Trustees (CBT), the apex decision-making body of EPFO, will also decide on amending EPF Scheme 1952 to raise the monthly wage ceiling to Rs 15,000 to cover more workers under its various social security programs like provident fund, pension, and employee deposit-linked insurance.
At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of the Employees' Provident Fund Organization (EPFO).
"The Finance Ministry has approved the Labour Ministry's proposal to provide a minimum pension of Rs 1,000 per month and enhance the wage ceiling to Rs 15,000. Now, the trustees would meet on February 5 to approve the amendment in schemes run by EPFO to operationalize the two decisions," an official source said.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, had earlier approved the proposal, following which the Labour Ministry pursued it with the Finance Ministry.
According to sources, after the nod given by the CBT, headed by the Labour Minister Oscar Fernandes, the two proposals would be put before the Union Cabinet for approval as the government would have to make provision of funds for the purpose.
The source further said that Finance Minister P Chidambaram may also make an announcement on the entitlement of a minimum monthly pension of Rs 1,000 in his interim budget next month.
The entitlement of a minimum monthly pension of Rs 1,000 to workers in the organized sector under the Employees' Pension Scheme 1995 (EPS-95) would benefit 27 lakh pensioners immediately.
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.
The other proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs 15,000 from the existing Rs 6,500 per month is expected to bring in 50 lakh more workers under the ambit of schemes run by the EPFO.
The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to benefit from April 1 this year.
The Labour Ministry in its revised proposal has asked the Finance Ministry to provide around Rs 1,217 crore additional amount every year and indicated that this amount can come down over a period of time with more members subscribing to EPS-95.
At present, the government contributes 1.16 percent of the basic wage of workers as a contribution toward the EPS-95. The government had provided around Rs 1,400 crore for the purpose in 2012-13.
The decision to enhance the wage ceiling would also have some financial implications as the government's contribution towards EPS-95 would increase towards EPS-95 as 50 lakh more workers would join the schemes run by EPFO.
Regards,
GAUTAM KAR - 09331148166
bumbahr@sify.com
From India, Kolkata
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RESPECTED SENIORS, Please guide me brief and simple way . Regards, Jr. HR DIGESH
From India, Surat
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From India, Surat
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In brief, these are only announcements or news updates. These will become effective only when the EPF Scheme is amended and the EPS is amended. Notification in this regard will be issued only after these proposals are approved by the Government. Until then, there is nothing for us to do.
From India, Madras
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From India, Madras
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Dear All, Kindly provide the notification copy if approved by the central goverment. Regards, Gayathri.
From India, Vijayawada
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From India, Vijayawada
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Dear Members,
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, will also decide on amending EPF scheme 1952 to raise the monthly wage ceiling to Rs 15,000 to cover more workers under its various social security programs like provident fund, pension, and employee deposit-linked insurance.
At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of the Employees' Provident Fund Organization (EPFO).
"The Finance Ministry has approved the Labour Ministry's proposal to provide a minimum pension of Rs 1,000 per month and enhance the wage ceiling to Rs 15,000. Now, the trustees would meet on February 5 to approve the amendment in schemes run by EPFO to operationalize the two decisions," an official source said.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, had earlier approved the proposal, following which the Labour Ministry pursued it with the Finance Ministry.
According to sources, after the nod given by the CBT, headed by the Labour Minister Oscar Fernandes, the two proposals would be put before the Union Cabinet for approval as the government would have to make provision of funds for the purpose.
The source further said that Finance Minister P Chidambaram may also make an announcement on the entitlement of a minimum monthly pension of Rs 1,000 in his interim budget next month.
The entitlement of a minimum monthly pension of Rs 1,000 to workers in the organized sector under the Employees' Pension Scheme 1995 (EPS-95) would benefit 27 lakh pensioners immediately.
At present, there are about 44 lakh pensioners. Of these 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.
From India, Bangalore
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The Central Board of Trustees (CBT), the apex decision-making body of EPFO, will also decide on amending EPF scheme 1952 to raise the monthly wage ceiling to Rs 15,000 to cover more workers under its various social security programs like provident fund, pension, and employee deposit-linked insurance.
At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of the Employees' Provident Fund Organization (EPFO).
"The Finance Ministry has approved the Labour Ministry's proposal to provide a minimum pension of Rs 1,000 per month and enhance the wage ceiling to Rs 15,000. Now, the trustees would meet on February 5 to approve the amendment in schemes run by EPFO to operationalize the two decisions," an official source said.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, had earlier approved the proposal, following which the Labour Ministry pursued it with the Finance Ministry.
According to sources, after the nod given by the CBT, headed by the Labour Minister Oscar Fernandes, the two proposals would be put before the Union Cabinet for approval as the government would have to make provision of funds for the purpose.
The source further said that Finance Minister P Chidambaram may also make an announcement on the entitlement of a minimum monthly pension of Rs 1,000 in his interim budget next month.
The entitlement of a minimum monthly pension of Rs 1,000 to workers in the organized sector under the Employees' Pension Scheme 1995 (EPS-95) would benefit 27 lakh pensioners immediately.
At present, there are about 44 lakh pensioners. Of these 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.
From India, Bangalore
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Dear Mr. Gautam,
Is there any circular from a government authority stating that the ceiling has been revised from 6500 to 15000? If so, kindly provide an update here.
By the way, thank you for sharing such information with all group members.
Parag
From India, Dhule
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Is there any circular from a government authority stating that the ceiling has been revised from 6500 to 15000? If so, kindly provide an update here.
By the way, thank you for sharing such information with all group members.
Parag
From India, Dhule
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EPFO and Mp act framed accordingly as per the real benefit for the beneficiaries
From India, Chennai
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From India, Chennai
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No circular is published. this is under discussion. It will be published soon after final decision.
From India, Mumbai
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From India, Mumbai
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The Ministry of Labour Employees Provident Fund Organisation (EPFO) in its 5 million to shareholders in a timely manner asked to provide sustainable provident fund account number so that they change jobs do not need to transfer the provident fund account.
According to sources, Labor Secretary Gouri Kumar on February 5 Central Board of Trustees (CBT) of the EPFO meeting in terms of direction - direction. CBT top decision-making body of the organization.
The source said, "Central Provident Fund Commissioner KK Jalan Kumar EPFO board's next meeting to provide information about the progress of the case and asked to provide a timetable for completing the work." Date of the next meeting has not been decided yet.
Permanent PF (Provident Fund) account number in areas such as construction will help to provide social security benefits to employees, contractors because these are areas where they stay and work space - times change.
According to the work plan provided by the Ministry of Labour, EPFO system to prepare for a specific employee number, which will be instrumental in giving facilities on the lines of core banking services.
EPFO to give shareholders a permanent PF account number must find a central server, which will connect all the 123 offices.
EPFO shareholders present at the job change is to apply to transfer the PF accounts. They change jobs every time a new PF account number is given.
Regards,
GAUTAM KAR - 09331148166
bumbahr@sify.com
From India, Kolkata
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According to sources, Labor Secretary Gouri Kumar on February 5 Central Board of Trustees (CBT) of the EPFO meeting in terms of direction - direction. CBT top decision-making body of the organization.
The source said, "Central Provident Fund Commissioner KK Jalan Kumar EPFO board's next meeting to provide information about the progress of the case and asked to provide a timetable for completing the work." Date of the next meeting has not been decided yet.
Permanent PF (Provident Fund) account number in areas such as construction will help to provide social security benefits to employees, contractors because these are areas where they stay and work space - times change.
According to the work plan provided by the Ministry of Labour, EPFO system to prepare for a specific employee number, which will be instrumental in giving facilities on the lines of core banking services.
EPFO to give shareholders a permanent PF account number must find a central server, which will connect all the 123 offices.
EPFO shareholders present at the job change is to apply to transfer the PF accounts. They change jobs every time a new PF account number is given.
Regards,
GAUTAM KAR - 09331148166
bumbahr@sify.com
From India, Kolkata
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As told PF wage ceiling increased from Rs 6,500 to Rs 15,000 Kindly see the Attached Notification
From India, Kolkata
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From India, Kolkata
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Dear Seniors It is said about 20% EDLI relief. Can any one explain this matter with the exact calculation please. Regards Pijush
From India, Bagnan
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From India, Bagnan
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Dear Members,
Is it fine if an employer keeps the same PF deduction for all the members (except trainees) e.g. 15,000*12% = 1800? Or should it be based on the basic salary, which varies from employee to employee?
Please advise on an urgent basis.
Thanks, Nikita
From India, Jamnagar
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Is it fine if an employer keeps the same PF deduction for all the members (except trainees) e.g. 15,000*12% = 1800? Or should it be based on the basic salary, which varies from employee to employee?
Please advise on an urgent basis.
Thanks, Nikita
From India, Jamnagar
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Hi Nikita, You can calculate it on the ceiling rate of 15000. that will do. or can also deduct on actual wage (Basic+DA) if it is more than the ceiling that is 15000. Regards Pijush
From India, Bagnan
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From India, Bagnan
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Dear Mr. Pijush,
Many thanks for your answer. I understood that the employer can maintain the same PF deduction for all employees (Rs. 1800) irrespective of the Basic+DA salary. As we are new to PF, I have another query regarding the same.
If the employer deducts PF as a part of CTC, then the contribution should be 13.61% of 15,000, which equals 2042 (8.33% - Pension, 3.67% - PF, admin charges - 1.10, EDLI - 0.5%, Admin charges - 0.01%). Is this correct?
Please assist.
Thanks,
Nikita
From India, Jamnagar
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Many thanks for your answer. I understood that the employer can maintain the same PF deduction for all employees (Rs. 1800) irrespective of the Basic+DA salary. As we are new to PF, I have another query regarding the same.
If the employer deducts PF as a part of CTC, then the contribution should be 13.61% of 15,000, which equals 2042 (8.33% - Pension, 3.67% - PF, admin charges - 1.10, EDLI - 0.5%, Admin charges - 0.01%). Is this correct?
Please assist.
Thanks,
Nikita
From India, Jamnagar
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To, deal all please give me some ideas about calculation of pf if any body given salary of rs. 12000/-
From India, Kolhapur
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From India, Kolhapur
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Hi Nikita,
That's right. Things are the same; only the ceiling wage is increased by this new amendment. The employer's contribution would be 13.61% of the wage, but you need to deduct only 12% from any employee's wage.
For instance:
- Basic + DA = 12000
- Employee contribution = 1440 (12%)
- Employer contribution = 1633 (13.61%)
Hope this information helps. For more clarification, please post your query.
Regards,
Pijush
From India, Bagnan
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That's right. Things are the same; only the ceiling wage is increased by this new amendment. The employer's contribution would be 13.61% of the wage, but you need to deduct only 12% from any employee's wage.
For instance:
- Basic + DA = 12000
- Employee contribution = 1440 (12%)
- Employer contribution = 1633 (13.61%)
Hope this information helps. For more clarification, please post your query.
Regards,
Pijush
From India, Bagnan
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Dear Patil, PF is always calculated on the wage that includes only Basic and DA. Please see my previous post it may give you some idea.
From India, Bagnan
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From India, Bagnan
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Hi All, Is it mandatory that employer and employee has to pay 1800 per mnth? even though their gross salary is less than 15000 per month? please advise.
From India, Madras
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From India, Madras
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Dear Sir,
I am very thankful for such important information. Now, I wish to clear my doubt about employees who are drawing a salary less than Rs. 15,000. For example, if an employee's salary is Rs. 10,000, what will be their basic pay in that case?
From India, Dhule
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I am very thankful for such important information. Now, I wish to clear my doubt about employees who are drawing a salary less than Rs. 15,000. For example, if an employee's salary is Rs. 10,000, what will be their basic pay in that case?
From India, Dhule
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Hello, can anyone help me as I am new to all these amendments? The employees whose PF was deducted earlier at 780 as a minimum, now their PF would be deducted as 1800 on 15000 at 12%. Please help. I am not clear with the amendment. Additionally, I read that 12 months have been replaced with 60 months in the new law. What does that mean??
From India, Delhi
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From India, Delhi
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As per my knowledge, when an employer contributes 12% of the salary of the employee, 3.67% goes to the PF account, and 8.33% goes to the Pension Scheme.
Now, if a person draws a salary of $20,000 and wants to be a member of EPF, the employee and employer will both contribute 12% of $15,000. However, the employee cannot be a member of the Pension Scheme because the limit is $15,000.
So, how will an employer contribute 12% in this case? Because he does not have a Pension account. 3.67% of $15,000 will go to the PF account, but where will 8.33% of $15,000 be deposited?
From India, Kolkata
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Now, if a person draws a salary of $20,000 and wants to be a member of EPF, the employee and employer will both contribute 12% of $15,000. However, the employee cannot be a member of the Pension Scheme because the limit is $15,000.
So, how will an employer contribute 12% in this case? Because he does not have a Pension account. 3.67% of $15,000 will go to the PF account, but where will 8.33% of $15,000 be deposited?
From India, Kolkata
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Basic Employee Employer Employer Total EPF EPS 8.33 EPF 3.67 Old 15000 1800 541 1259 3600 - Earlier, there was a ceiling of 541 for the pension fund. New 15000 1800 1250 550 3600 - Now, this ceiling revised to 1250 for the pension fund. No change in deduction or employer contribution; the only thing is the employer provident fund will be reduced, and the pension fund will be more. For more clarification, reach my mail at tqmmmohan@gmail.com
From India, Chennai
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From India, Chennai
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx