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Changes soon in the maximum limit for Provident Fund
Posted on: 26/Jun/2014 3:21:13 PM
The provident Fund for employees is calculated on the details of basic pay. The maximum Provident Find Deduction is set at Rs. 6500/- per month. As per the Provident Fund Act, the practice was to include the employers’ contribution of Provident Fund at 12% .
A change in this procedure is mooted to increase the maximum PF deduction from Rs. 6500/- to Rs. 15000/-. It is also proposed to set the minimum pension per month at Rs. 1000/-. This was approved by the previous government. However, it was not executed as it was considered against the Election Codes & Conduct.
With the formation of the new government and the positive interest shown for the PF limit changes, it is expected that the above changes may be announced soon.
Currently, there are 8 crore members in the EPF (Employees’ Provident Fund) pension scheme. The change proposed above will benefit 20 Lakh members.
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