Taking into consideration the current economic condition in the country, the starting salary in most of the Indian cities ranges from Rs 18,000 to Rs 25,000.
If you are an employee in the private sector and your salary is slightly more than Rs 15,000, there might be good news for you. According to the latest update, employees who have not yet been fully benefiting from the Provident Fund (PF) scheme may receive their dues, as the demand to increase the PF salary limit (EPF Wage Limit) is entering its final stages.
A recent directive from the Supreme Court has paved the way for PF benefits for these employees, who have been waiting for this rule to change for the past 11 years.
Supreme Court gives a time of 4 months
In its directive, the Supreme Court has given the central government and EPFO four months to come to a decision on this issue.
During the hearing of a Public Interest Litigation (PIL) in the court, it was brought to notice that the current PF limit of Rs 15,000 is outdated.
As the court has asked the government to consider this matter and clear its stance within the next four months, in accordance with the law, the matter is likely to be expedited.
Taking into consideration the current economic condition in the country, the starting salary in most of the Indian cities ranges from Rs 18,000 to Rs 25,000.
Current EPF limit
As per the old rules, participation in the PF scheme is not mandatory for those whose salary exceeds Rs. 15,000. This meant that a considerable number of people found themselves unable to save for their post-retirement life and remained outside the scope of social security.
The Labour Union has voiced its concerns, asking for the limit to be raised to Rs 30,000, which would, in turn, benefit more people.
Previously, the PF salary limit was changed in 2014, as it was increased from Rs 6,500 to Rs 15,000. The rules have remained unchanged in the last eleven years. The scheme was launched in 1952, with the limit kept at Rs 300 only. Since then, it has gradually increased to Rs 15,000. Under the current scenario, employees are demanding that the limit be revised every three to five years in line with inflation.
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