EPFO Central Board of Trustees (CBT) members have proposed to the Ministry of Labor to cut contribution and increase the pension limit for the country’s 4.5 crore PF members. CBT members have started pressuring them citing the interest of employees. Members have demanded the Labor Ministry to include it in the agenda of the next board meeting.
Board members have made it clear in the proposal that in the ESIC scheme of the ministry, the ceiling of the coverage of employees has been increased to 21 thousand salary. Similarly, the limit of contribution deduction of PF members should be increased from 15 thousand to 25 thousand. At present, the maximum amount of PF contribution is reduced to Rs 1800 per month on 15 thousand rupees. The employer collects the same amount, but given the time, this amount is less. Therefore the deduction limit should be 25 thousand. 25 thousand to be deducted on salary or basic. The employer should also deposit his contribution on this amount.
EPFO CBT member Harbhajan Singh said in a conversation with Hindustan that the members have given the proposal to the Union Labor Minister along with the ministry. Increasing the contribution will strengthen the PF account of the employees and will also deposit huge amount in EPFO fund. After retirement, the employee will also get a respectable amount of life cut from PF deduction.
Harbhajan Singh said that the minimum pension is still one thousand rupees. Inadequate according to the current time and circumstances. The members have proposed to increase it to 7.5 thousand. EPFO can use the funds lying in inoperative accounts to increase pension. Unclaimed money has never been cleared. In the year 2014, the unclaimed amount was 40 thousand crores and in the last financial year it was stated as 27 thousand crores. These issues will also come up in the board meeting.
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