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There is good news for EPF account holders. The government may soon issue a new guideline for EPFO. The government is going to make some new changes in this. This biggest change can be regarding the wage limit. At present, under the Employees Provident Fund Organization (EPFO), employees and employers are given a 12 percent contribution to the basic salary. In which the wage limit is fixed at Rs 15 thousand. However, according to media reports, the government is now preparing to change this limit.

Will get the benefit of EPF and EPS

According to media reports, now the government can make it Rs 21 thousand. Due to this, employees will get the benefit of EPF and EPS. EPFO is considering increasing the wage limit from Rs 15 thousand to Rs 21 thousand. If this change is implemented, it will affect lakhs of employees and employers.

What is the rule of EPF and EPS?

According to the current rules of EPFO, employees whose basic salary is Rs 15,000 or less get the benefit of the Employees Provident Fund (EPF) and EPS (Employees Pension Scheme). 12 percent of the salary of both the employee and the employer has to be deposited in EPF. Out of the 12 percent contribution of the employer, 8.33 percent goes to EPS, but it can be a maximum of Rs 1,250.

What can change?

If the government increases the salary limit from Rs 15,000 to Rs 21,000, what changes will happen to it? This will bring more money to EPS. Right now, where EPS gives Rs 1,250 to the employer, after the increased limit, it will become Rs 1,749. This means that you will get more pensions after retirement.

How much will it affect your salary?

What will be its effect on your salary? Let us tell you, if the PF deduction can increase then your net in-hand salary can be reduced a bit. But you will get the benefit of this at the time of retirement. There will be more savings for retirement.

When will this change happen?

For information, let us tell you that till now EPFO or the government has not issued any official notification on this. But if sources are to be believed, then this is being discussed and the government can likely take a decision on this soon. For a long time, labor unions and pensioners had also demanded that the wage limit be increased.

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