EPFO, Employees Provident Fund Organization is considering increasing the minimum wage limit from Rs. 6,500 per month for mandatory deductions in Provident Fund by employers to Rs. 15,000 per month.

What does this mean for employers?

Currently if you have employees with monthly wages (Basic + DA) less than Rs 6,500 per month, it is mandatory for you to make PF deductions (12% employee contribution + 12% employer contribution + 1.61% as PF administration charges). EPFO intends to increase this limit per month to Rs. 15,000. So PF deductions become mandatory if any of your employees have monthly wages less than Rs. 15,000.

eVetan’s take

A progressive step especially for millions of workers who gain access to assured retirement benefits, which otherwise becomes difficult for workers to subscribe themselves.

-Vineet Pandey
(Vineet is a co-founder with eVetan.com. He can be reached at: vineet@eVetan.com)