The good news for millions of Public Servants is on the way. The government is now thinking of increasing the minimum wage for workers under the Employees’ Provident Fund Organisation (EPFO). At present, the minimum wage is fixed at ₹ 15,000/- per month which can go up to ₹ 21,000/- and would help the workers to get ₹ 6,000/- more per month.
Government Plan on Salary Increase
Presently the government is planning to increase the minimum wages under the EPFO scheme. If it will be allowed this employeesincome could increase a lot and the future will be protected. This decision could be implemented before the end of the year. Would contribute not only to the employees themselves but also to their Social Security.
Previous Salary Increase
The last time bonuses and wages were adjusted under EPFO was in 2014 when minimum wage increased from ₹6,500 to ₹15,000. This year the Ministry of Labour and Employment started absolutely different conversation and speaks about another increase.
The ministry is holding discussions with relevant enterprises to agree on how workers would be protected while the business expands under the new wage structure.
Effect on Employees and Their Benefits
with the raise of the salary to ₹ 21000 the pension accounts of the employees and their Provident Fund (PF) will be impacted. Such an increase will help create good employee welfare in the long run since employees will be financially secured. However, concern may arise from some small companies because the move might also lead to additional charges in relation to the number of employees to be included in the EPFO.
EPFO is Employees Provident Fund Organisation, which has two aspects: Contributions & Benefits
Under the EPFO employees and the employers pay their share to their PF account. Both pays 12% of the salary, whereby a portion is contributed to the Employee Pension Scheme (EPS). The employee is fully covered and after 10 years of service, the employee is given pension.
The PF account can be withdrawn in cases of emergencies, but there are limitations for withdrawal such as the frequency of withdrawal is limited. It is a good development for the EPFO employees as it gives them better bright future and offers increment in the salary package.
