You will be able to deposit more money in PF
There may soon be a major change in the rules related to Provident Fund (PF) in the country. The Central Government may make changes in the upper limit of contribution in PF. Union Labour Minister Mansukh Mandaviya himself has informed that the Government is reviewing it.
Union Minister Mansukh Mandaviya says the government is trying to remove the upper limit of Employees Provident Fund Organisation (EPFO) and Employees Pension Scheme (EPS).
You will be able to deposit more money than before
The Union Minister said that a consolidated amount is paid to 92 per cent of EPFO ​​subscribers. Therefore, the government wants to ease the upper limit of deposit in EPFO, so that people can save more in EPFO.
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Union Minister Mansukh Mandaviya answered questions from reporters on the occasion of completing 100 days of the Modi government’s third term. Also in July 2024, the Trade Union Labour Ministry has prepared a proposal. Then there was news that the government may increase the upper limit of PF contribution from Rs 15,000 per month to Rs 25,000 per month.
What is the limit for depositing money in PF now?
At present, each employee can deposit a maximum contribution of Rs 15,000 in his/her PF account. The government had increased this limit on September 1, 2014. Before that, from 2001 to 2014, the maximum limit for depositing PF was Rs 6,500 per month. As per PF norms, 12 per cent of an employee’s basic salary, house rent allowance (HRA) and other allowances are deposited in PF.
In this case, the employee’s contribution goes directly to the PF account, while the company or employer also has to deposit the same amount, although 8.33 percent goes to his/her pension account, the remaining 3.67 percent is deposited in the employee’s PF account.
PF in the country as a social.
